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Efficiency of Agriculture Subsidies in Kazakhstan

Author

Listed:
  • Siximbayeva Gaukhar

    (Department of Economics and Entrepreneurship, L.N. Gumilyov Eurasian National University, Kazakhstan)

  • Shayakhmetova Kulshariya

    (Department of Management, ESIL University, Kazakhstan)

  • Yernazarova Urkhiya

    (Academic School of Business and Management, «Q» University (Qaynar))

  • Ruzanov Rashid

    (Institute of Economics of the National Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan)

Abstract

Agricultural subsidies are a vital instrument for fostering the development of Kazakhstan’s agricultural sector. This study evaluates the effectiveness of government support in enhancing agricultural productivity and explores farmers’ perceptions of subsidy programs. The research analyzes key economic indicators, including subsidies, loans, and investments in fixed assets, to understand their influence on labor productivity. Additionally, survey data from 323 farmers provide insights into the challenges and benefits associated with subsidy mechanisms. The results highlight that subsidies and loans positively impact productivity, while excessive employment growth and over-reliance on subsidies may reduce efficiency. Farmers view subsidies as essential for sustaining their activities but identify challenges such as insufficient funding, complex application processes, and technical issues with automated systems. Furthermore, regression analysis reveals that expanding acreage, increasing income, and improving access to credit significantly enhance productivity, whereas short-term investments require further optimization. This study contributes to the existing literature by addressing the role of state support in transitional economies and providing policy recommendations to improve the efficiency and accessibility of agricultural subsidies. The findings emphasize the need for balanced resource allocation, enhanced financial literacy among farmers, and streamlined subsidy distribution processes to foster sustainable growth in Kazakhstan’s agricultural sector.

Suggested Citation

  • Siximbayeva Gaukhar & Shayakhmetova Kulshariya & Yernazarova Urkhiya & Ruzanov Rashid, 2025. "Efficiency of Agriculture Subsidies in Kazakhstan," Central European Journal of Public Policy, Sciendo, vol. 19(1), pages 22-37.
    • Handle: RePEc:vrs:cejopp:v:19:y:2025:i:1:p:22-37:n:1003
    DOI: 10.2478/cejpp-2025-0003
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    References listed on IDEAS

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    1. Marian Rizov, 2005. "Does Does Individualisation Help Productivity of Transition Agriculture," The Institute for International Integration Studies Discussion Paper Series iiisdp039, IIIS.
    2. Marian Rizov, 2005. "Does individualization help productivity of transition agriculture?," Agricultural Economics, International Association of Agricultural Economists, vol. 33(2), pages 215-227, September.
    3. J. Bradford De Long & Lawrence H. Summers, 1991. "Equipment Investment and Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 445-502.
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