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Digital Revolution and the Shadow Economy: Opportunities and Challenges for Kazakhstan

In: Shadow Economies in Turkic Republics

Author

Listed:
  • Saltanat Kondybayeva

    (Al-Farabi Kazakh National University)

  • Zhansaya Temerbulatova

    (Almaty Management University)

Abstract

This study explores the impact of digital transformation on the shadow economy in Kazakhstan, focusing on both the challenges and opportunities presented by the rapid adoption of digital technologies. The research aims to assess how internet penetration and mobile cellular subscriptions influence the size of the shadow sector, while also considering the role of key macroeconomic variables such as GDP per capita, unemployment rate, inflation, and tax revenue. The empirical analysis, based on a mixed-method approach, reveals that increasing internet usage significantly reduces the shadow economy, driven by enhanced transparency and economic monitoring. In contrast, the proliferation of mobile cellular subscriptions shows a positive association with informal economic activities, highlighting the dual role of mobile technologies. The study also identifies the necessity of integrating digital financial systems and improving digital literacy to mitigate the adverse effects of digitalization. The findings underline the importance of well-coordinated policy measures to maximize the potential benefits of digital transformation while addressing the inherent risks associated with the shadow economy.

Suggested Citation

  • Saltanat Kondybayeva & Zhansaya Temerbulatova, 2026. "Digital Revolution and the Shadow Economy: Opportunities and Challenges for Kazakhstan," Springer Books, in: Elshan Bagirzadeh & Omer Gokcekus (ed.), Shadow Economies in Turkic Republics, chapter 3, pages 67-90, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-12872-0_3
    DOI: 10.1007/978-3-032-12872-0_3
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