REGIONAL DISPARITIES AND DUAL DYNAMICS: ECONOMIC GROWTH AND INCOME INEQUALITY IN KAZAKHSTAN
REGIONAL DISPARITIES AND DUAL DYNAMICS: ECONOMIC GROWTH AND INCOME INEQUALITY IN KAZAKHSTAN

Summary/Abstract: This study examines the complexrelationships between economic growth and incomeinequality in different regions of Kazakhstan,revealing the nuances of their interaction. The articleaims to assess the long-term and short-term effects ofeconomic growth on income inequality in bothforward and reverse directions across the regions ofKazakhstan. Employing region-specific time seriesdata allowed us to examine the bidirectional impact ofeconomic growth on inequality, using an errorcorrection model (ECM) to describe short-run andlong-run relationships. The results highlight that therelationship between economic growth and incomeinequality is heterogeneous across regions, reflectingeach area's unique economic and social landscapes.The estimation results support the hypothesis of aninverted U-shaped Kuznets curve linking GRP percapita to inequality with varying starting points fordifferent regions. Regarding the inverse relationship,we identified a positive causal relationship for theWest Kazakhstan, Zhambyl and Pavlodar regions,indicating that increased income inequality stimulatedeconomic growth. The study also highlights thesignificant role of trade, labour force, investment andgovernment consumption in shaping theserelationships.

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