IDEAS home Printed from https://ideas.repec.org/a/aiy/journl/v11y2025i2p234-252.html

SME growth and economic inefficiency due to environmental pollution: the case of SMEs in monocities of Kazakhstan

Author

Listed:
  • Lee Han-Sol

    (Department of Marketing, Faculty of Economics, Peoples’ Friendship University of Russia named after Patrice Lu-mumba, Moscow, Russia)

  • Ravil R. Asmyatullin

    (Department of Marketing, Faculty of Economics, Peoples’ Friendship University of Russia named after Patrice Lu-mumba, Moscow, Russia;Department of World Economy, Plekhanov Russian University of Economics, Moscow, Russia)

  • Nursultan B. Shurenov

    (Higher School of Economics and Business, Al-Farabi Kazakh National University, Almaty, Republic of Kazakhstan; RMIT university, Melbourne, Australia)

  • Nataliya A. Tovma

    (Higher School of Economics and Business, Al-Farabi Kazakh National University, Almaty, Republic of Kazakhstan)

  • Ekaterina A. Degtereva

    (Department of Marketing, Faculty of Economics, Peoples’ Friendship University of Russia named after Patrice Lu-mumba, Moscow, Russia)

Abstract

Relevance. This study explores the intersection of economic growth and environmental sustainability in Kazakhstan’s monocities. Traditionally dependent on resource-based sectors, these towns face such persistent issues as economic vulnerability, over-reliance on specific industries, and environmental degradation. Research objective. The research aims to investigate how the expansion of small and medium-sized enterprises (SMEs) is linked to economic inefficiency arising from environmental pollution in Kazakhstan’s monocities. Data and methods. The analysis uses data from 26 monocities for the period 2018–2022. The econometric approach explores the relationship between SME growth and environmental costs through indicators such as the ratio of ecological expenditures to gross regional product, the number of SMEs, and the share of SMEs in each monocity relative to the total across all monocities. Estimation techniques include Ordinary Least Squares (OLS), random effects, and Generalized Method of Moments (GMM) regressions. Results. The results consistently reveal a positive correlation between SME growth and ecological expenditures. This indicates that while SME development contributes to economic activity, their proliferation in monocities is associated with a disproportionate rise in environmental costs, resulting in increased economic inefficiency. Conclusions. To enhance economic efficiency without compromising environmental goals, government policy should encourage the development of environmentally responsible SMEs. Recommended measures include tax incentives, financial support, green certification, improved environmental infrastructure, adoption of digital technologies, and implementation of smart city concepts. These strategies are essential for fostering sustainable growth, especially as Kazakhstan seeks to move beyond the “resource curse†and pursue regional development aligned with global environmental priorities.

Suggested Citation

  • Lee Han-Sol & Ravil R. Asmyatullin & Nursultan B. Shurenov & Nataliya A. Tovma & Ekaterina A. Degtereva, 2025. "SME growth and economic inefficiency due to environmental pollution: the case of SMEs in monocities of Kazakhstan," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 11(2), pages 234-252.
    • Handle: RePEc:aiy:journl:v:11:y:2025:i:2:p:234-252
    DOI: https://doi.org/10.15826/recon.2025.11.2.012
    as

    Download full text from publisher

    File URL: https://r-economy.com/article/view/8966
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.15826/recon.2025.11.2.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:journl:v:11:y:2025:i:2:p:234-252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Irina Turgel (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.