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Regional Industrial Specialization in Kazakhstan

22.07.2015 | Research in progress | Economy | 1,150 Kanat Makhanov

This study examines changes in regional industrial specialization in Kazakhstan during the period from 1990 to 2013. It is based on production data from 30 industries in 16 regions of Kazakhstan. The analysis suggests that during the sample period the regions of Kazakhstan became more specialized in absolute and relative terms. However, the patterns of spatial movement of industries were highly affected by the rapid growth of the oil and gas industry. This made the oil producing regions to have a completely different performance from the rest of the regions in terms of industrial specialization. As a result, the oil producing regions became extremely specialized in absolute terms whereas other regions became highly specialized in relative terms. This fundamentally changed the industrial specialization of the western oil rich regions. The southern and eastern regions as well as the capital city were less exposed to this effect. Relatively small changes of industrial specialization were found in the central and northern regions. However, the oil and gas industry is gradually losing its impetus that was extremely strong in 1990s.

Tags: Economy, Spatial Economy, Industrial Specialization, Regional Economy

Author

  • Junior Research Fellow

    Kanat Makhanov

    Kanat Makhanov is a research fellow at the Eurasian Institute of the International H.A Yassawi Kazakh-Turkish University. He holds a BA in Business Economics from the KIMEP University from 2012.