IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v13y2025i2p38-d1583925.html
   My bibliography  Save this article

Analysis of the Impact of SMEs’ Production Output on Kazakhstan’s Economic Growth Using the ARDL Method

Author

Listed:
  • Aziza Syzdykova

    (Department of Economics, Finance and Accounting, Faculty of Economics, Management and Law, Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkistan 161200, Kazakhstan)

  • Gulmira Azretbergenova

    (Department of Economics, Finance and Accounting, Faculty of Economics, Management and Law, Khoja Akhmet Yassawi International Kazakh-Turkish University, Turkistan 161200, Kazakhstan)

Abstract

Small and medium-sized businesses (SMEs) are an essential subject of economic activity in any country because, without their participation, the development and formation of the very structure of the economy are almost impossible. The role of SMEs is significant since these businesses allow for an increase in the number of jobs, develop competition, and, as a result, improve the quality of goods, creating different price segments. More than 4 million people are employed in this sector in the Republic of Kazakhstan, and their share of GDP is 36.7%. The accelerated contribution of the SME sector to Kazakhstan’s GDP has led to the need to conduct a study in this area. This study analyzes the impact of SME production output on Kazakhstan’s economic growth by considering some macroeconomic variables using the ARDL model. The study’s findings confirm that SME output positively and significantly impacts economic growth. The government of Kazakhstan has been implementing a series of policies and incentive programs to increase the contribution of the SME sector to economic growth since the years of independence. However, SMEs are not able to reach their full potential due to various restrictions that limit their expansion. This study offers some suggestions for the development of the SME sector. In order to ensure SME concentration in the economy, investment in R&D should be a priority incentive. On the other hand, we should recognize the shadow economy problem in the country.

Suggested Citation

  • Aziza Syzdykova & Gulmira Azretbergenova, 2025. "Analysis of the Impact of SMEs’ Production Output on Kazakhstan’s Economic Growth Using the ARDL Method," Economies, MDPI, vol. 13(2), pages 1-17, February.
    • Handle: RePEc:gam:jecomi:v:13:y:2025:i:2:p:38-:d:1583925
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/13/2/38/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/13/2/38/
    Download Restriction: no
    ---><---

    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:gam:jecomi:v:13:y:2025:i:2:p:38-:d:1583925. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.