IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/128410.html
   My bibliography  Save this paper

One Kazakhstan, multiple nations: on a growing regional divide amidst economic dynamism

Author

Listed:
  • Rodríguez-Pose, Andrés
  • Bartalucci, Federico
  • Rau, Genadiy

Abstract

This article provides a comprehensive analysis of the growing regional divide in Kazakhstan, examining the dimensions and implications of spatial inequality in a country that has experienced robust economic growth in recent decades. We employ convergence analysis, a Regional Development Trap Index, and a Regional Competitiveness Index to measure territorial inequalities across Kazakhstan. Our findings reveal that whilst the country has achieved relatively rapid aggregate economic growth, this has been accompanied by a widening territorial divide. Wealth and economic activities are becoming increasingly concentrated in major urban centres such as Almaty and Astana, whilst other regions —particularly those in the south— continue to lag significantly behind. These results highlight an increasingly polarised nation, where certain regions benefit from economic dynamism and Kazakhstan's international integration, whilst others remain trapped in low-growth equilibria. The article concludes by offering targeted policy recommendations aimed at promoting inclusive growth, enhancing regional competitiveness, and reducing spatial disparities throughout Kazakhstan.

Suggested Citation

  • Rodríguez-Pose, Andrés & Bartalucci, Federico & Rau, Genadiy, 2025. "One Kazakhstan, multiple nations: on a growing regional divide amidst economic dynamism," LSE Research Online Documents on Economics 128410, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:128410
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/128410/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Andrés Rodríguez-Pose, 2012. "Trade and Regional Inequality," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 109-136, April.
    2. Andrés Rodríguez-Pose & Roberto Ezcurra, 2011. "Is fiscal decentralization harmful for economic growth? Evidence from the OECD countries," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 619-643, July.
    3. Christian Lessmann, 2012. "Regional Inequality and Decentralization: An Empirical Analysis," Environment and Planning A, , vol. 44(6), pages 1363-1388, June.
    4. Andrés Rodríguez-Pose & Lewis Dijkstra & Hugo Poelman, 2024. "The Geography of EU Discontent and the Regional Development Trap," Economic Geography, Taylor & Francis Journals, vol. 100(3), pages 213-245, May.
    5. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    6. Ricardo Hausmann & Lant Pritchett & Dani Rodrik, 2005. "Growth Accelerations," Journal of Economic Growth, Springer, vol. 10(4), pages 303-329, December.
    7. Eichengreen, Barry & Park, Donghyun & Shin, Kwanho, 2014. "Growth slowdowns redux," Japan and the World Economy, Elsevier, vol. 32(C), pages 65-84.
    8. Andreas Diemer & Simona Iammarino & Andrés Rodríguez-Pose & Michael Storper, 2022. "The Regional Development Trap in Europe," Economic Geography, Taylor & Francis Journals, vol. 98(5), pages 487-509, October.
    9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    10. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    11. Rodriguez-Pose, Andres & Gill, Nicholas, 2006. "How does trade affect regional disparities?," World Development, Elsevier, vol. 34(7), pages 1201-1222, July.
    12. Glaeser, Edward L., 2008. "Cities, Agglomeration, and Spatial Equilibrium," OUP Catalogue, Oxford University Press, number 9780199290444.
    13. Andr�s Rodr�guez-Pose, 2013. "Do Institutions Matter for Regional Development?," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1034-1047, July.
    14. Christian Lessmann, 2012. "Regional inequality and decentralization: an empirical analysis," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1363-1388, June.
    15. Gill,Indermit S. & Kharas,Homi, 2015. "The middle-income trap turns ten," Policy Research Working Paper Series 7403, The World Bank.
    16. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lessmann, Christian & Seidel, André, 2017. "Regional inequality, convergence, and its determinants – A view from outer space," European Economic Review, Elsevier, vol. 92(C), pages 110-132.
    2. Lessmann, Christian, 2014. "Spatial inequality and development — Is there an inverted-U relationship?," Journal of Development Economics, Elsevier, vol. 106(C), pages 35-51.
    3. Łukasz Piętak, 2022. "Regional disparities, transmission channels and country's economic growth," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 270-306, January.
    4. Roberto Ezcurra & Andrés Rodríguez-Pose, 2017. "Does ethnic segregation matter for spatial inequality?," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1149-1178.
    5. Georg Hirte & Christian Lessmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo.
    6. Georg Hirte & Christian Lessmann, 2014. "Trade and Interregional Inequality," ERSA conference papers ersa14p304, European Regional Science Association.
    7. Lant Pritchett & Erik Werker, 2012. "Developing the guts of a GUT (Grand Unified Theory): elite commitment and inclusive growth," Global Development Institute Working Paper Series esid-016-12, GDI, The University of Manchester.
    8. Rodríguez-Pose, Andrés & Ketterer, Tobias, 2016. "Institutions vs. ‘First-Nature’ Geography – What Drives Economic Growth in Europe’s Regions?," CEPR Discussion Papers 11322, C.E.P.R. Discussion Papers.
    9. Focacci, Chiara Natalie & Kovac, Mitja & Spruk, Rok, 2023. "Ethnolinguistic diversity, quality of local public institutions, and firm-level innovation," International Review of Law and Economics, Elsevier, vol. 75(C).
    10. Antoni Estevadeordal & Alan M. Taylor, 2013. "Is the Washington Consensus Dead? Growth, Openness, and the Great Liberalization, 1970s–2000s," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1669-1690, December.
    11. Robert Stewart & Murshed Chowdhury, 2025. "How does institutional quality respond to banking crises occurrences?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-40, December.
    12. Jorge Díaz-Lanchas & Peter Mulder, 2021. "Does decentralization of governance promote urban diversity? Evidence from Spain," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1111-1128, June.
    13. Rodríguez-Pose, Andrés & Bartalucci, Federico & Lozano-Gracia, Nancy & Dávalos, María, 2024. "Overcoming left-behindedness. Moving beyond the efficiency versus equity debate in territorial development," LSE Research Online Documents on Economics 125629, London School of Economics and Political Science, LSE Library.
    14. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2023. "On the relative contributions of national and regional institutions to economic development," Working Papers 2023/01, Economics Department, Universitat Jaume I, Castellón (Spain).
    15. Oumarou Zallé & Pousseni Bakouan, 2024. "Spillover effects of fiscal decentralization on access to basic social services in Burkina Faso," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    16. Michael Storper, 2018. "Separate Worlds? Explaining the current wave of regional economic polarization," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 247-270.
    17. Lopez-Uribe, Maria del Pilar & Castells-Quintana, David & McDermott, Thomas K. J., 2017. "Geography, institutions and development: a review ofthe long-run impacts of climate change," LSE Research Online Documents on Economics 65147, London School of Economics and Political Science, LSE Library.
    18. Selim Raihan & Sabyasachi Kar & Kunal Sen, 2018. "Transitions between growth episodes: Do institutions matter and do some institutions matter more?," Global Development Institute Working Paper Series esid-099-18, GDI, The University of Manchester.
    19. Rodríguez-Pose, Andrés & Vidal-Bover, MIquel, 2022. "Unfunded mandates and the economic impact of decentralisation. When finance does not follow function," CEPR Discussion Papers 17613, C.E.P.R. Discussion Papers.
    20. Massimo Finocchiaro Castro & Calogero Guccio & Domenica Romeo & Francesco Vidoli, 2025. "How does institutional quality affect the efficiency of local government? An assessment of Italian municipalities," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 42(2), pages 569-597, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ehl:lserod:128410. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.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.