Impact of Economic and Social Factors on Urban Development: A Comprehensive Analysis of Cities in Kazakhstan
https://doi.org/10.47703/ejebs.v68i1.354
Abstract
This study presents a comprehensive analysis of the development dynamics of cities in Kazakhstan, focusing on the interplay between economic and social factors and their impact on the Gross Regional Product (GRP). Employing a dataset encompassing a range of indicators, cities were categorized into development groups (Highly Developed, Moderately Developed, Less Developed) based on normalized composite scores. The study aimed to test two central hypotheses through Partial Least Squares Regression (PLSR) analysis: firstly, that economic factors are significant positive determinants of GRP, overshadowing the influence of social factors; and secondly, that social factors significantly influence GRP, with economic factors playing a lesser role. The analysis revealed that economic factors, including SME activity, retail trade, fixed capital investment, and tax revenue, exhibited a substantial impact on GRP, whereas social factors like population growth, average salary, and income levels showed relatively less influence. The findings underscore the predominance of economic determinants in shaping regional productivity, providing critical insights for strategic urban development planning and policy-making. By highlighting the differential impacts of economic and social factors on urban development, this study contributes to the broader understanding of regional growth dynamics and offers a data-driven foundation for targeted developmental initiatives in Kazakhstan's urban centers.
About the Authors
Maxat Shakibayev
K.Zhubanov Aktobe Regional University (Zhubanov University), Aktobe, Kazakhstan
Kazakhstan
Kazakhstan
PhD student, Email: maksat-argu@mail.ru
Kuralay Balginova
K.Zhubanov Aktobe Regional University (Zhubanov University), Aktobe, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Associate Professor, Email: k_balginova@mail.ru
Murat Aimurzinov
Kostanay Socio-Technical University named after Academician Z.Aldamzhar, Kostanay, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Associate Professor. Email: ams-66@mail.ru
Aizhan Baimukhamedova
Gazi University, Department of Industrial Engineering, Ankara, Turkey
Turkey
Turkey
DBA, Associated Professor, Email: djanin65@gmail.com
References
1. Alpatov, G.E., & Yakushkina, A.A. (2017). The influence of the state of city-forming enterprises on the sustainability of single-industry towns. Scientific journal of NRU ITMO. Economics and Environmental Management Series, 2, 8-17. (In Russ.)
2. Ascani, A., Bettarelli, L., Resmini, L., & Balland, P. A. (2020). Global networks, local specialisation and regional patterns of innovation. Research policy, 49(8), 104031. https://doi.org/10.1016/j.respol.2020.104031
3. Atawodi, O. W., & Ojeka, S. A. (2012). Relationship between tax policy, growth of SMEs and the Nigerian economy. International Journal of Business and Management, 7(13), 125.
4. Bartlett, W., & Bukvič, V. (2001). Barriers to SME growth in Slovenia. MOST: Economic Policy in Transitional Economies, 11(2), 177–195. https://doi.org/10.1023/A:1012206414785
5. Bureau of National Statistics (2022). Available: http://www.stat.gov.kz (Accessed on 30 January 2024).
6. Henderson, V. (2003). The Urbanization process and Economic Growth. Journal of Economic Growth, 8(1), 47–71. https://doi.org/10.1023/a:1022860800744
7. Huang, Y., Hong, T., & Ma, T. (2020). Urban network externalities, agglomeration economies and urban economic growth. Cities, 107, 102882. https://doi.org/10.1016/j.cities.2020.102882
8. Kangalakova, D.M., Satpayeva, Z.T. & Ilyas A. (2023) Socio-Economic Profile of Large Cities of Kazakhstan. Central Asian Economic Review, 1, 60-71. https://doi.org/10.52821/2789-4401-2023-1-60-71 (In Russ.)
9. Liu, X. & Zhang, X. (2021). Industrial agglomeration, technological innovation and carbon productivity: Evidence from China. Resources, conservation and recycling, 166, 105330. https://doi.org/10.1016/j.resconrec.2020.105330
10. Nabi, A. A., Shahid, Z. A., Mubashir, K. A., Ali, A., Iqbal, A. & Zaman, K. (2020). Relationship between population growth, price level, poverty incidence, and carbon emissions in a panel of 98 countries. Environmental Science and Pollution Research, 27, 31778-31792. https://doi.org/10.1007/s11356-020-08465-1
11. Obaturov, A. A. (2014). Institutional environment of small and medium-sized businesses in St. Petersburg. Economics and Management, 12 (110), 74-78. (In Russ.)
12. Rajesh Raj, S. N., & Mahapatra, M. K. (2009). Growth and productivity performance of small manufacturing enterprises (SMEs). Journal of Indian Business Research, 1(1), 39–56. https://doi.org/10.1108/17554190910963190
13. Tan, R., Zhou, K., He, Q., & Xu, H. (2016). Analyzing the effects of spatial interaction among city clusters on urban growth—Case of Wuhan urban agglomeration. Sustainability, 8(8), 759. https://doi.org/10.3390/su8080759
14. Tricarico, L., & De Vidovich, L. (2021). Proximity and post-COVID-19 urban development: Reflections from Milan, Italy. Journal of Urban Management, 10(3), 302-310. https://doi.org/10.1016/j.jum.2021.03.005
15. Surya, B., Hadijah, H., Suriani, S., Baharuddin, B., Fitriyah, A. T., Menne, F. & Rasyidi, E. S. (2020). Spatial transformation of a new city in 2006–2020: perspectives on the spatial dynamics, environmental quality degradation, and socio—economic sustainability of local communities in Makassar City, Indonesia. Land, 9(9), 324. https://doi.org/10.3390/land9090324
16. Woodward, D., Rolfe, R., Ligthelm, A., & Guimaraes, P. (2011). The viability of informal microenterprise in South Africa. Journal of Developmental Entrepreneurship, 16(01), 65-86. http://dx.doi.org/10.1142/S1084946711001719
17. Voroshilov, N. V. (2020). Trends and features of retail trade development in the region (information and statistical review). Social Space, 6(1), 4-4. (In Russ.)
18. Yao, Y., Pan, H., Cui, X., & Wang, Z. (2022). Do compact cities have higher efficiencies of agglomeration economies? A dynamic panel model with compactness indicators. Land Use Policy, 115, 106005. https://doi.org/10.1016/j.landusepol.2022.106005
Review
For citations:
Shakibayev M., Balginova K., Aimurzinov M., Baimukhamedova A. Impact of Economic and Social Factors on Urban Development: A Comprehensive Analysis of Cities in Kazakhstan. Eurasian Journal of Economic and Business Studies. 2024;68(1):77–89. https://doi.org/10.47703/ejebs.v68i1.354
Views:
107
JATS XML
Email this article 