Employment elasticity of output growth in Kazakhstan economy: Recent evidence from a macroeconomic perspective

Authors

  • Javaid Ahmad Bhat Centre of Central Asian Studies, University of Kashmir
  • Imtiyaz ul Haq University of Kashmir
  • Sajad Ahmad Bhat University of Kashmir
  • Nikolay Megits Webster University, St. Louis, MO, USA; University of Johannesburg, South Africa https://orcid.org/0000-0002-3959-7647

DOI:

https://doi.org/10.15549/jeecar.v9i2.852

Keywords:

employment, intensity, Kazakhstan, economy, macroeconomic, dereminants, rolling, regression

Abstract

This study aims to understand the dynamics of aggregate and sectorial employment elasticity of output growth in the Kazakhstan economy from 1996 to 2019. To serve our purpose, a rolling regression method with a window of 6 years has been used to estimate aggregate and sectoral employment elasticity, and an ARDL bounds testing approach has been incorporated to assess the impact of various macroeconomics determinants. The results indicate the existence of a cointegration relationship, and the employment elasticity of output growth in Kazakhstan's economy has declined at aggregate and sectoral levels, thus indicating jobless growth. More specifically, the results reveal that inflation, trade openness and the exchange rate are negatively associated with employment elasticity. In contrast, a positive association is established between service sector employment share, the population growth rate and employment elasticity of output growth. The study recommends strengthening macroeconomic fundamentals such as inflation and exchange rate stabilization coupled with robust development of human capital.

Author Biographies

Javaid Ahmad Bhat, Centre of Central Asian Studies, University of Kashmir

Research scholar at Centre of Central Asian Studies, University of Kashmir, India

Imtiyaz ul Haq, University of Kashmir

Professor at Department of Economics, University of Kashmir, India

Sajad Ahmad Bhat, University of Kashmir

Assistant Professor at Department of Economics, University of Kashmir, India

Nikolay Megits , Webster University, St. Louis, MO, USA; University of Johannesburg, South Africa

Adjunct Professor  at  Webster University, St. Louis, MO, USA

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Published

2022-03-12

How to Cite

Bhat, J. A., Imtiyaz ul Haq, Bhat, S. A., & Megits , N. (2022). Employment elasticity of output growth in Kazakhstan economy: Recent evidence from a macroeconomic perspective. Journal of Eastern European and Central Asian Research (JEECAR), 9(2), 369–384. https://doi.org/10.15549/jeecar.v9i2.852

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