ARTICLE

THE TRANSITION FROM A COMMAND TO A MARKET ECONOMY IS KAZAKHSTAN A SUCCESS STORY IN TERMS OF ECONOMIC PERFORMANCE

  1. HOME
  2. ARTICLE

02 Pages : 11-20

http://dx.doi.org/10.31703/gssr.2020(V-I).02      10.31703/gssr.2020(V-I).02      Published : Mar 2020

The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?

Abstract

    Kazakhstan has made considerable progress in shifting from command to a market economy. The transition process towards a “market economy was expected to enhance the economic performance” of the country which in turn was anticipated to uplift the life of a common man. This study, therefore, aims“ to examine the impact of economic freedom on economic growth” of Kazakhstan. The results indicate that though the reform process of Kazakhstan is in a transition phase, yet economic freedom has contributed positively“ towards the economic growth” of the country.“The results also indicate that in sub-indicators of economic freedom, monetary freedom” and protection of property right have contributed to the growth of Kazakhstans economy while an increase in government size impedes the economic growth of the country."

    (1) Shaukat Hussain
    PhD Scholar,Department of International Relations,Preston University, Islamabad, Pakistan.
    (2) Javed Iqbal
    Associate Professor,School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.
    (3) Zulfaqar Ali Chughtai
    Professor,Department of International Relations, Preston University, Islamabad, Pakistan.
Fulltext PDF

References

  • Adkins, L. C., Moomaw, R. L., & Savvides, A. (2002). Institutions, freedom, and technical efficiency. Southern economic journal, 92-108.
  • Aitken, J. (2012). Kazakhstan: Surprises and stereotypes after 20 years of independence: Bloomsbury Publishing.
  • Akimov, A., & Dollery, B. (2007). An evaluation of Kazakhstan's Financial System Reforms in.
  • Akin, C. S., Aytun, C., & Aktakas, B. G. (2014). The impact of economic freedom upon economic growth: an application on different income groups. Asian Economic and Financial Review, 4(8), 1024.
  • Ali, A. (1997). Economic freedom, democracy and growth. Journal of private enterprise, 13(1), 1-20.
  • Alshanov, R. (2011). Ekonomika Kazahstana za 20 Let: Dostizhenia i Puti Dalneishego Razvitia (The Economy of Kazakhstan after 20 Years: Achievements and Future Development Prospects). Kazahstanskaya pravda, 7
  • Amin, A. A., & Ainekova, D. (2012). The Long Run Growth Rate of the Kazakhstan s Economy. Eurasian Journal of Business and Economics, 5(9), 45-56.
  • Anwar, S., & Nguyen, L. P. (2014). Is foreign direct investment productive? A case study of the regions of Vietnam. Journal of Business Research, 67(7), 1376-1387.
  • Ã…slund, A. (2007). Russia's capitalist revolution: Why market reform succeeded and democracy failed: Peterson Institute.
  • Assane, D., & Chiang, E. P. (2014). Trade, Structural Reform, and Institutions In Sub-Saharan Africa. Contemporary Economic Policy, 32(1), 20-29.
  • Ayal, E. B., & Karras, G. (1998). Components of economic freedom and growth: An empirical study. The Journal of Developing Areas, 32(3), 327-338.
  • Ayala, A., Cunado, J., & Gil-Alana, L. A. (2013). Real convergence: empirical evidence for Latin America. Applied economics, 45(22), 3220-3229.
  • Barro, R. J., Sala-i-Martin, X., Blanchard, O. J., & Hall, R. E. (1991). Convergence across states and regions. Brookings papers on economic activity, 107-182.
  • Bashir, M. F., & Xu, C. (2014). Impact of political freedom, economic freedom and political stability on economic growth. Journal of Economics and Sustainable Development, 5(22), 59-67.
  • Berggren, N. (2003). The benefits of economic freedom: a survey. The Independent Review, 8(2), 193- 211.
  • Bilskie, J. S., & Arnold, H. M. (2002). An examination of the political and economic transition of Mongolia since the collapse of the Soviet Union. Journal of Global South Studies, 19(2), 205.
  • Brown Jr, J. R. (1998). Culture, Chaos, and Capitalism: Privitization in Kazakhstan. U. Pa. J. Int'l Econ. L., 19, 909.
  • Brumm, H. J. (2003). Aid, policies, and growth: Brauer was right. Cato J., 23, 167.
  • Burnside, C., & Dollar, D. (2000). Aid, policies, and growth. American economic review, 90(4), 847- 868.
  • Carlsson, F., & Lundström, S. (2002). Economic freedom and growth: Decomposing the effects. Public choice, 112(3-4), 335-344.
  • Charman, K. (2007:180). Kazakhstan: A state-led liberalized market economy? Varieties of Capitalism in Post-Communist Countries (pp. 165-182): Springer.
  • Chodak, G., & Kowal, K. (2011). Degree of economic freedom and relationship to economic growth and human development.
  • Dave, B. (2007). The EU and Kazakhstan: Balancing economic cooperation and aiding democratic reforms in the central Asian region. CEPS Policy Briefs(1-12), 1-8.
  • Dawson, J. W. (1998). Institutions, investment, and growth: New cross-country and panel data evidence. Economic inquiry, 36(4), 603-619.
  • De Haan, J., & Sturm, J.-E. (2000). On the relationship between economic freedom and economic growth. European journal of political economy, 16(2), 215-241.
  • Doucouliagos, C., & Ulubasoglu, M. A. (2006). Economic freedom and economic growth: Does specification make a difference? European journal of political economy, 22(1), 60-81.
  • Easterly, W. (2003). Can foreign aid buy growth? Journal of Economic Perspectives, 17(3), 23-48.
  • Easton, S. T., & Walker, M. A. (1997). Income, growth, and economic freedom. The American Economic Review, 87(2), 328-332.
  • Faria, H. J., & Montesinos, H. M. (2009). Does economic freedom cause prosperity? An IV approach. Public choice, 141(1-2), 103-127.
  • Gumppenberg, M.-C. v. (2007). Kazakhstan-Challenges to the Booming Petro-Economy: FAST Country Risk Profile Kazakhstan.
  • Gwartney, J. D., Lawson, R., & Block, W. (1996). Economic freedom of the world, 1975-1995: The Fraser Institute.
  • Gwartney, J. D., Lawson, R., & Holcombe, R. G. (1998). The size and functions of government and economic growth: Joint Economic Committee Washington.
  • Gwartney, J. D., Lawson, R. A., & Clark, J. R. (2005). Economic Freedom of the world, 2002. The Independent Review, 9(4), 573-593.
  • Hall, J., & Lawson, R. (2008). Theory and evidence on economic freedom and economic growth: A comment. Economics Bulletin, 15(18), 1-6.
  • Hall, T. W., & Elliott, J. E. (1999). Poland and Russia one decade after shock therapy. Journal of Economic Issues, 33(2), 305-314.
  • Heckelman, J. C. (2000). Economic freedom and economic growth: A short-run causal investigation. Journal of Applied Economics, 3(1), 71-91.
  • Heinrich, A., & Pleines, H. (2012). Weder Fluch noch Segen-Die Politischen Herausforderungen des Erdölbooms in Kasachstan: Zentralasien-Analysen.
  • Hussain, M., & Haque, M. (2016). Impact of economic freedom on the growth rate: A panel data analysis. Economies, 4(2), 5.
  • IMF. (2011:122). Slowing Growth, Rising Risks.
  • Iradian, G. (2009). What explains the rapid growth in transition economies? IMF Staff Papers, 56(4), 811-851.
  • Justesen, M. K. (2008). The effect of economic freedom on growth revisited: New evidence on causality from a panel of countries 1970-1999. European journal of political economy, 24(3), 642-660.
  • Knack, S., & Keefer, P. (1995). Institutions and economic performance: cross-country tests using alternative institutional measures. Economics & Politics, 7(3), 207-227.
  • Kneller, R., Bleaney, M. F., & Gemmell, N. (1999). Fiscal policy and growth: evidence from OECD countries. Journal of Public Economics, 74(2), 171-190.
  • Knox, C. (2008). Kazakhstan: modernizing government in the context of political inertia. International Review of Administrative Sciences, 74(3), 477-496.
  • Laeven, L., & Beck, T. (2006). Institution Building and Growth in Transition Economies.
  • Levine, R., & Renelt, D. (1992). A sensitivity analysis of cross-country growth regressions. The American Economic Review, 942-963.
  • Luong, P. J., & Weinthal, E. (2001). Prelude to the resource curse: Explaining oil and gas development strategies in the Soviet successor states and beyond. Comparative Political Studies, 34(4), 367- 399.
  • Mendelski, M. (2008). The varieties of capitalism approach goes east: institutional complementarities and law enforcement during post-communist transition: na
  • Merrill, S., & Whiteley, D. (2003). Establishing mortgage guarantee insurance in transition and emerging markets: a case study of Kazakhstan. Housing Finance International, 18(1), 10-19.
  • Nazarbayev, N. (2003). Strategiya Nezavisimosti (Strategy of Independence). Almaty, Kazakhstan: Atamura
  • Nelson, M. A., & Singh, R. D. (1998). Democracy, economic freedom, fiscal policy, and growth in LDCs: a fresh look. Economic Development and Cultural Change, 46(4), 677-696.
  • Nowak-Lehmann, F., Dreher, A., Herzer, D., Klasen, S., & Martínez-Zarzoso, I. (2012). Does foreign aid really raise per capita income? A time series perspective. Canadian Journal of Economics/Revue canadienne d'économique, 45(1), 288-313.
  • Nyström, K. (2008). The institutions of economic freedom and entrepreneurship: evidence from panel data. Public choice, 136(3-4), 269-282.
  • Pal, S., Dutta, N., & Roy, S. (2011). Media freedom, socio-political stability and economic growth. Retrieved September, 26, 2011.
  • Park, W. G., & Wagh, S. (2002). Index of patent rights. Economic freedom of the world: 2002 annual report, 33-43.
  • Pitlik, H. (2002). The path of liberalization and economic growth. Kyklos, 55(1), 57-80.
  • Pomfret, R. (2009). Central Asia and the Global Economic Crisis. EUCAM Policy Brief No. 7, June 2009.
  • Riihimäki, E. (2005). Economic integration and the elasticities of labour demand: econometric evidence from Finland.
  • Riihimäki, E. (2007). Profit Sharing, Economic Integration and Employ-ment: Econometric Evidence from Finland.
  • Rodrik, D. (1998). Has globalization gone too far? Challenge, 41(2), 81-94.
  • Seputiene, J., & Skuncikiene, S. (2011). The relationship between economic development and economic freedom: The case of Transition economies. Economics, Management and Financial Markets, 6(1), 790.
  • Simon, G. (2009). Market reforms and'economic miracle'in Kazakhstan. Economic Annals, 54(182), 67-92.
  • Spechler, M. (2004). Central Asia on the edge of globalization. Challenge, 47(4), 62-77.
  • Spechler, M. C. (2000). Uzbekistan: the silk road to nowhere? Contemporary Economic Policy, 18(3), 295-303.
  • Spechler, M. C. (2003). Crouching dragon, hungry tigers: China and Central Asia. Contemporary Economic Policy, 21(2), 270-280.
  • Spechler, M. C. (2008:33). The economies of Central Asia: A survey. Comparative Economic Studies, 50(1), 30-52.
  • Spence, M. (2009). Internationalisation of entrepreneurship in Kazakhstan. International Journal of Globalisation and Small Business, 3(3), 252-262.
  • Swaleheen, M., & Stansel, D. (2007). Economic freedom, corruption, and growth. Cato Journal, 27(3), 18-25.
  • Teal, E. J., Toxanova, A. N., & Izzo, G. M. (2011). Entrepreneurial development in Kazakhstan: A review and update. Journal of International Business and Cultural Studies, 5, 1.
  • Thompson, M. A., & Rushing, F. W. (1996). An empirical analysis of the impact of patent protection on economic growth. Journal of Economic Development, 21(2), 61-79.
  • Tiwari, A. K. (2011). Foreign aid, FDI, economic freedom and economic growth in Asian countries. Global Economy Journal, 11(3), 1850231.
  • Torstensson, J. (1994). Property rights and economic growth: an empirical study. Kyklos, 47(2), 231- 247.
  • Treacher, A. (1996). Political evolution in post-Soviet Central Asia. Democratization, 3(3), 306-327.
  • Tumenbayeva, O. (2012). Kazakhstan Banking system restructuring (2007-2010). Procedia-Social and Behavioral Sciences, 62, 1107-1109.
  • Weede, E., & Kämpf, S. (2002). The impact of intelligence and institutional improvements on economic growth. Kyklos, 55(3), 361-380.
  • Williamson, C. R., & Mathers, R. L. (2011). Economic freedom, culture, and growth. Public choice, 148(3-4), 313-335.
  • Woodard, L. (2018). From Prikaz to Procedures: Becoming an International Organization in Post-Soviet Kazakhstan. PoLAR: Political and Legal Anthropology Review, 41(1), 75-89.
  • Wu, W., & Davis, O. A. (1999). The two freedoms, economic growth and development: An empirical study. Public choice, 100(1-2), 39-64.
  • Wu, W., & Davis, O. A. (2004). Economic freedom and political freedom The Encyclopedia of Public Choice (pp. 487-496): Springer.
  • Zarakhovich, Y. (2006). Kazakhstan Comes on Strong. Time Magazine, 27, 9999-9991.
  • Zardykhan, Z. (2002). Kazakhstan and Central Asia: regional perspectives. Central Asian Survey, 21(2), 167-183.

Cite this article

APA

    APA : Hussain, S., Iqbal, J., & Chughtai, Z. A. (2020). The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?. Global Social Sciences Review, V(I), 11-20. https://doi.org/10.31703/gssr.2020(V-I).02

CHICAGO

    CHICAGO : Hussain, Shaukat, Javed Iqbal, and Zulfaqar Ali Chughtai. 2020. "The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?." Global Social Sciences Review, V (I): 11-20 doi: 10.31703/gssr.2020(V-I).02

HARVARD

    HARVARD : HUSSAIN, S., IQBAL, J. & CHUGHTAI, Z. A. 2020. The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?. Global Social Sciences Review, V, 11-20.

MHRA

    MHRA : Hussain, Shaukat, Javed Iqbal, and Zulfaqar Ali Chughtai. 2020. "The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?." Global Social Sciences Review, V: 11-20

MLA

    MLA : Hussain, Shaukat, Javed Iqbal, and Zulfaqar Ali Chughtai. "The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?." Global Social Sciences Review, V.I (2020): 11-20 Print.

OXFORD

    OXFORD : Hussain, Shaukat, Iqbal, Javed, and Chughtai, Zulfaqar Ali (2020), "The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?", Global Social Sciences Review, V (I), 11-20

TURABIAN

    TURABIAN : Hussain, Shaukat, Javed Iqbal, and Zulfaqar Ali Chughtai. "The Transition from a Command to a Market Economy: Is Kazakhstan a Success Story in terms of Economic Performance?." Global Social Sciences Review V, no. I (2020): 11-20. https://doi.org/10.31703/gssr.2020(V-I).02