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Economics: the strategy and practice

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Vol 18, No 1 (2023)
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INNOVATION, INNOVATION AND TECHNOLOGICAL DEVELOPMENT, DIGITALIZATION 

6-19 516
Abstract

The purpose of the study: qualitative and quantitative comparison of tools for assessing the effectiveness of the use of the innovative potential of the enterprise. To achieve the research goal, the following tasks are set: to study the structure of the components of innovation potential in the context of achieving business efficiency; evaluate the tools used in practice to study the innovative potential of the enterprise; compare the tools for assessing the innovative potential of enterprises in terms of profitability and efficiency of the enterprise. The results of this study will allow us to substantiate the modern concept of innovative activity of the enterprise, based on the structure of innovative potential, consisting of four components: research, personnel, material and technical base, and corporate entrepreneurship. Secondly, the study aims to assess the enterprise’s innovative potential, which differs in the quality and quantity of indicators used. The measurement tools used in practice include a balanced scorecard; multilevel assessment using a tree of cluster factors; assessment based on world indices and/or monitoring; mixed and statistical approach. Thirdly, it was found that on the basis of practical and value criteria, a system of balanced indicators of the innovative potential of an enterprise and an economic justification for the development of developed economic structures, as well as for enterprises focused on innovative capitalization and corporate entrepreneurship, is effective. Tools with probabilistic, analytical and statistical measurement methods are also useful for developed sectors of the economy and for enterprises focused on sustainable business. 

20-35 473
Abstract

The purpose of the work is to develop a methodology for assessing readiness for e-commerce in the B2C sector, which allows for assessing the conditions and factors for the development of e-commerce in the context of the regions of Kazakhstan. The research methodology is based on the use of methods for compiling a composite index, expert assessments, aggregation and normalization of data. The information base of the study was the reports of the International Telecommunication Union, UNESCO, the Universal Postal Union, and the World Bank, as well as official data from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms and the National Bank of the Republic of Kazakhstan. The testing of the methodology was carried out on the example of the regions of Kazakhstan, which made it possible to rank the regions of Kazakhstan in terms of readiness for B2C e-commerce. The estimates obtained allow us to compare the aggregated indicators and its composite indicators for the regions of Kazakhstan by years and to identify areas of regions lagging behind the average national values for certain indicators of readiness for B2C e-commerce. The theoretical significance of the study lies in the development of a methodology for inter-regional comparative analysis of the level of infrastructure readiness for e-commerce. Individual conclusions of the study can also be the basis for setting new research tasks. The practical applicability of the research results is characterized by the possibility of using the developed assessment tools in the work of the relevant specialized government bodies in the process of compiling program documents for the development of e-commerce in the regions of Kazakhstan. 

REGIONAL ECONOMY AND TERRITORIAL DEVELOPMENT 

36-54 506
Abstract

Food security is an economic category officially accepted in international practice, used to describe the state of the food market of a country or group of countries, as well as the world market that provides guaranteed access to all social groups. As world experience shows, special state bodies developed in the agro-industrial sphere have been established in all countries, performing the functions of regulating and protecting the agricultural sector and the agricultural food market. The main goal of our research work is to determine and prove the current level of food safety. At the same time, the social development of leading countries and determination of Kazakhstan’s priorities in this field using domestic food security policy. Materials on the regulation and support of food security in the USA and Brazil, which are of interest to other countries, are presented and analyzed. Our research paper also presents the policy of food security in China and the Russian Federation. Food security of the Republic of Kazakhstan is provided. In our opinion, a necessary and sufficient condition for food security is economic growth, which leads to an increase in food production, real incomes of people, and an active policy on the part of the state to help the poor. Ensuring food security is associated with the impact of various factors and conditions: as it is the driving force, the cause of the process, and the phenomenon. Food security is influenced by political, social, economic, natural and other factors.

55-67 417
Abstract

To characterize the demographic development of a particular region, it is necessary not only to determine population growth, but also to expand the subject area of statistical demography and conduct research to identify patterns of natural renewal of the structure of the age composition of the population. For the completeness of the study, methods of statistical and mathematical analysis were used. Official long-term statistical data for Almaty were collected and analyzed. A mathematical model was developed to determine the share of influence of each factor. It is substantiated that the demographic development of the city of Almaty cannot be characterized as a process of reproduction. Causeand-effect relationships of population growth from migration processes are revealed. It is noted that in the city of Almaty there were demographic phenomena typical for large cities of the modern world. It is substantiated that the growth of the population of Almaty does not have a positive impact on the demographic development of the country, but leads to negative consequences (high population density of the city, infrastructure, traffic jams, temporary labor migrants) of the development of the metropolis and the country as a whole. The significance of the results of the study lies in the recommendations for taking measures to limit the movement of internal migration in Almaty and aimed at natural demographic reproduction.

68-86 396
Abstract

It is important to improve the socio-economic situation of rural residents worldwide, improve the quality of life, and reduce poverty. The development of rural areas in Kazakhstan is considered a strategic goal and the mechanisms for its development are constantly being improved. Nevertheless, the income of the population in priority rural regions of the country and the level of access to social and Engineering Infrastructure Services could be higher than the urban population. The study showed the importance of strengthening trilateral ties between the state, business representatives and society, increasing the Corporate Social Responsibility (CSR) of local entrepreneurs in rural areas. The purpose of the study is to show the importance of CSR, as well as the state, in ensuring the highquality functioning of social and engineering infrastructure in rural areas of Kazakhstan. In the study of Zerenda and Korgalzhyn districts of Akmola region for the period from 2010 to 2021; The analysis of the state of the economic, demographic, and socio-engineering infrastructure of the Auliekol and Altynsarinsky districts of Kostanay region was carried out. As a result, socio-economic and infrastructure problems in rural areas of the country were identified. In particular: in order to solve the problems of reducing the number of specialists in the social sphere, access to drinking water, roads, transport, internet, etc., the state can develop social and engineering infrastructure of rural territories by creating conditions for the development of local entrepreneurs and increasing their CSR.

87-102 591
Abstract

Internal migration is a transitional moment for young people to migrate abroad. This article aims to study city infrastructure as a factor influencing the internal migration of young people to big cities. This is one of the country’s problems because it results in a «brain drain» abroad. There is a need to consider these factors. The study examines young people involved in internal migration who arrived in Almaty, aged 14 - 29. The methodology of this study is based on the method of Everett S. Lee. It analyzes factors influencing the internal migration of young people to cities with a population of one million. The article discusses objective factors that constrain or stimulate the migration process between regions of the Republic of Kazakhstan. These factors include the number of universities and colleges, the number of employers, medical and entertainment institutions, etc. These indicators were grouped into four factors: education, health care, entertainment and employment. For data analysis and processing, generalization and systematization methods were used. Data for factor estimation was obtained from the National Bureau of Statistics and other official sources for the period 2014 - 2021. Correlation-regression analysis was conducted using the SPSS program to determine the relationship between internal migration and city infrastructure indicators. Results obtained showed a significant relationship between the internal migration of young people and educational and health organizations. Education is seen as one of the main factors in the internal and external migration of young people. Therefore, the development of higher education and employment rates is essential to prevent brain drain.

103-115 505
Abstract

The purpose of the study is to check which of our selected factors most influences the decision to study in certain regions of Kazakhstan. A complete higher education indicates the professional and cultural level of a significant part of the population, especially young people. It is not only an indicator of economic growth but also of social stability. A high level of development of the education system is the basis for the stability of any state, as well as the potential for its further development. During the study, the main sources were analyzed and based on which the methodology chosen. The methodological basis for us was multivariate regression analysis using the EViews10 data analysis package program. The research was based on data from the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan for 2011-2021. Based on a multifactorial analysis, five independent factors were selected, but in the course of the study, one factor was not influential, it was: the graduation of students from higher education organizations. Of the estimated four factors, three turned out to be the most influential, these are the number of the teaching staff of higher education organizations, the level of youth unemployment (15-28 years) and the number of higher educational institutions. The calculations showed that the selected factors showed different influences in different regions. As a result of the study, recommendations were developed on state policy in the field of education to increase the educational potential of the regions. The results of the study can be used by regional higher education institutions, as well as state educational management structures.

ECONOMY, ECONOMIC THEORY AND ECONOMIC GROWTH 

116-132 583
Abstract

The article is devoted to developing the institutional framework for the social responsibility of business in the Republic of Kazakhstan. The object of the study is business organizations represented by small, medium, and large enterprises. The subject of the study is the organizational and economic foundations of social responsibility. The purpose of this study is to analyze the trends of social responsibility, identify problems, priorities for building this institution. The following methods were used as research methods: analytical, statistical, computational-analytical, and dialectical-search methods. The study is based on data for the strategic period 2016-2020, separate data for 2010 and 2015. The study showed that the participation of enterprises in the development of the social sphere is in its infancy. The mechanisms of social responsibility are characteristic of large enterprises, an important role belongs to the state. Social responsibility does not meet international standards. Social responsibility-oriented standards are not used enough in the business environment. In the labor market, there are tendencies to reduce real wages, which reduces the degree of social responsibility. The formed mechanisms of social responsibility do not create conditions for developing the social sphere, or the development of human potential, which does not contribute to economic growth. In the future, the organizational and economic mechanisms of social responsibility of large corporations, small and medium-sized businesses at the micro, meso and macro levels should be improved. The study was discussed at scientific seminars at Toraigyrov University with the participation of economists, representatives of the state and businesses.

133-144 506
Abstract

The article deals with the current world tourism market crisis and the opportunities to overcome it. The relevance of the topic and the significance of the study are due to tourism being among the sustainable economic development and social stability factors in any region of the world. This industry has suffered from the pandemic compared to any other one(s). The purpose of the study is to identify trends and patterns of the current international tourism market crisis and to analyze problems and opportunities to solve these. The scientific literature analysis on the modern international tourism market crisis issue has demonstrated that researchers agree on the global significance of the tourism business entities’ current losses. At the same time, scientists consider it impossible to reliably predict COVID’s final impact on the international tourism industry. The article presents an analysis of the dynamics of the development of the international tourism market over the past ten years and a generalization of the consequences inflicted on the tourism economy in the 2020 crisis year and the first half of 2021. The international organizations-based statistical analysis data made it possible to substantiate the current tourism development directions in the context of the negative factors’ influence associated with the spread of new coronavirus infection. On the basis of a survey of the tourists, the travel companies’ possibilities to improve their development strategies and to use competitive advantages in new conditions are concretized. The 5P marketing model is, therefore, recommended. 

TRANSFORMATION OF THE INSTITUTIONAL ENVIRONMENT AND PUBLIC ADMINISTRATION 

145-164 574
Abstract

The purpose of the research is to conduct an in-depth analysis and evaluation of existing “the Public and Local Administration” (PA) educational programs across the universities of Kazakhstan. This study was carried out with the support of the Astana Civil Service Hub. The object of the research is 120 universities, 45 of which train personnel in 48 educational programs within the bachelor’s degree (PA), and 38 universities have 73 master’s degree programs in PA major. Only six universities provide eight doctoral educational programs respectively. The Academy of Public Administration (APA) under the President of the Republic of Kazakhstan gives an opportunity to obtain a specialized PhD profile degree in PA. In the course of the study, the number of methods such as: comparative analysis, observation, induction and deduction, logical approach, and interviews were engaged. Current research has analyzed the higher education sources in the field of PA, namely educational programs from the open platforms of the Ministry of Science and Higher Education of the Republic of Kazakhstan, along with syllabuses, regulatory educational legal acts, legislation in the field of PA and expert interviews. The findings come from calculating the ratio of disciplines according to the components of which the taught disciplines were distributed: management, economics, law, public policy, digital knowledge, and interdisciplinary disciplines. Results indicate that the PA undegraduate programs (39 universities out of 45) are mainly synchronized with economic educational programs. The research will be continued with regard to the assessment of the academic personnel and research capacity of universities within PA educational programs, alongside with an analysis of the APA training programs correspondingly.

165-179 378
Abstract

The management decision performs three critical functions: guiding, organizing and motivating. It is obvious that the growth of the university’s potential largely depends on management processes and on the effectiveness of management decisions made in the activities of the staff of the educational organization. As practice shows in modern conditions, not many domestic leaders are familiar with the theory of development and adoption of managerial decisions. The study analyzes the main approaches to the process of making managerial decisions at the university. The expected results are related to the study of theoretical approaches and the determination of the possibility of using controlling tools. The study was conducted based on primary data that were collected through a questionnaire. The survey of respondents was conducted among the teaching staff at Almaty Management University. To solve the problem, the classic Pareto Chart tool and the modern Tree Diagram tool were used, which showed different results. In the course of the study, hypotheses were put forward, some of which needed practical confirmation. The results showed that there is no standard algorithm for the process of making managerial decisions in all universities in Kazakhstan. The resulting decision-making algorithm is not ideal and, with mass implementation, will lead to an increase in risks in the personnel management of educational organizations. However, the method of building control itself can be used by other universities since the scheme of primary and new controlling methods considered by the authors is quite flexible. 

DEMOGRAPHY, HUMAN RESOURCES AND THE LABOR MARKET 

180-195 358
Abstract

The concept of human capital is being actualized in the conditions of global turbulence. Both classics of political economy and modern economic scientists have significantly contributed to the conceptualization of human capital over the centuries. In the period of global uncertainty and the transformation of economic relations, one can notice the lack of a specific approach to the concept. In the global economy, human capital plays a role that determines and reveals the true causes of various economic and social phenomena. Economists consider human capital as a category of economic science, which is at the origins of economic well-being and development. The purpose of this study is to explicate various approaches to the study of the concept of human capital that can have a significant impact on further research. The article reviews and attempts to categorize theoretical interpretations of the concept of human capital. When writing the article, the method of retrospective analysis of research on the concept of human capital was used to categorize various schools and directions. The analysis allowed us to identify four main categories of approaches in research on human capital. Based on this, the authors noted the need to introduce semantic additions to the concept, considering modern realities. Based on the results obtained, the authors attempted to conceptualize human capital in the latest conditions. The analysis carried out in the article showed that the study of the concept of human capital requires a modern interpretation, including all previous theoretical developments and new aspects related to the requirements of the time. 

196-209 558
Abstract

Among the long-term factors in developing the country’s economy and its regions is the development of human capital. However, the country’s human capital has a different level of physical and mental development. In this regard, the study of social policy is most relevant to improve the demographic situation in the country. The article considers the main tasks of the demographic development of Kazakhstan in recent years in connection with the level of social policy development. The issue of the effectiveness of social policy is particularly important for Kazakhstan, which is associated with the inevitability of population aging and the rapid increase in the burden on the ablebodied population, as well as a decrease in the number of young people and the number of women at the peak of fertility. This entails a decrease in the population in the future. The purpose of this article is to develop social policy mechanisms to improve the demographic situation in the country. The development of social infrastructure— education, healthcare, culture, sports, and other similar systems—could improve the demographic situation in Kazakhstan. The research method is a systematic and integrated approach that can develop recommendations in social policy to increase the population. The results of the study cover recommendations for social services and the development of social infrastructure. The theoretical significance of the study lies in the use of this material in textbooks, and the practical significance lies in the use of recommendations by authorities. 

210-226 323
Abstract

Human capital represented by young people is becoming an important potential for the country’s development. To reduce young people’s migration flows, it is necessary to know what influences their decision to leave the country. The purpose of this work is to study economic factors of youth migration globally through the literature review and to conduct a comparative analysis of economic indicators between the member-states of the Eurasian Economic Community. The methodology is based on the most similar and the most diverse systems, which are widely used in comparative studies. Accordingly, a small number of cases were selected based on similar models used. An analysis of similarities and identified differences between countries was carried out. The study included three stages: literature review, indicators selection and comparative analysis. Comparative analysis was based on four indicators, such as public spending on R&D, the total number of emigrants, the share of remittances in GDP and the unemployment rate. The data was collected from open sources. According to the literature review, investment in R&D was found to have a strong influence on the decision of emigrants, especially young people, to migrate. The analysis showed strong similarities between Armenia, Kyrgyzstan and Belarus regarding unemployment and educational indicators. The results for Russia and Kazakhstan confirmed the assumption of utility theory, according to which young people usually leave for the sake of better educational programs. The results of this study can be used to improve and adjust the youth and migration state policy, which may reduce the migration of young people abroad. 

227-240 486
Abstract

Gender inequality remains a pressing issue in Kazakhstan, with vertical and horizontal segregation resulting in unequal pay and the representation of men and women in different professions. To achieve equal access to labor, social and institutional resources, the state’s economic policy aims to address this problem. Data collected from 2016-2021 from the electronic portal of the Bureau of National Statistics of Kazakhstan showed that women dominate public education schools and higher education institutions. However, there have been minor changes in the percentage of male and female teachers and faculty members. The Duncan index, which measures gender segregation, showed a difference of 17.1 percentage points between the proportion of male and female teachers in general education schools and male and female faculty members in higher education institutions. At the same time, the field of education is one of the lowest paid in Kazakhstan. The article’s main results highlight the unequal opportunities for women compared to men. Occupational segregation can also be geographically considered, taking into account the burden of housekeeping. Rural women experience more occupational discrimination than their urban counterparts. Addressing the gender disparity in higher education faculty is essential to promoting diversity, equity, and inclusion in academia and beyond. Gender equality in higher education is critical for social and economic progress, as research and education are the primary drivers of innovation and development. 

241-255 449
Abstract

One of the most important areas of state policy is to improve the quality of medical services. The issue of staffing becomes relevant. In recent years, there have been certain positive development trends in the dynamics of staffing of the healthcare system. But insufficient staffing of medical organizations remains a problem, which leads to a decrease in the effectiveness and effectiveness of measures aimed at improving the health of the population. The purpose of the work is to study the availability of human resources in healthcare, identify problems and develop measures for improvement. The main tasks - to study the theoretical aspects of the development of personnel policy, the analysis of personnel security, the development of recommendations for improving personnel policy. The object of the study is the healthcare personnel of the Republic of Kazakhstan. The subject of the study is the forecast of the need for medical personnel. Research methods. The following general scientific research methods are used in the work: generalization, statistical methods, comparative and regression analyses. The results. The study analyzed changes in the number of medical personnel, graduates of medical educational programs, the need for specialists was calculated using regression analysis, and the forecast of the need until 2025 was considered. The increase in the number of medical personnel needs is a significant obstacle to the provision of quality services. Conclusion. Based on the conducted research, it is necessary to increase the prestige of the doctor, develop various methods of motivating and stimulating the work of healthcare workers, implement measures to solve social problems, etc. 

FINANCE AND MANAGEMENT ACCOUNTING, ACCOUNTING 

256-270 422
Abstract

This research aimed to examine and identify different factors influencing Small and Medium Size Enterprises (SMEs’) failure to meet financial obligations to banks in Qatar. Based on the obtained results, the development of recommendations for regulators. As the contributions of SMEs are significant in the maintenance of economic development in the country. Nevertheless, SMEs have been struggling to finance the projects as they often lack the required funds and thus have to source from financial institutions. The authors selected Qatar Development Bank as the case study. A systematic literature review was made and a questionnaire with closed-ended questions was designed to explore the Small and Medium Size Enterprises’ causes of non-payments of loans. Authors have approached SMEs with loan default by phone, as this was the only possible way to collect data due to the social distancing during the Covid-19 pandemic. A complete list of 142 Small and Medium Size Enterprises with nonpayments of loans was taken from the Qatar Development Bank and approached for data collection, and received 85 responses. Simple descriptive statistics for the analysis were used. The findings showed that SMEs encounter challenges in the repayment of loans. Moreover, the highly competitive market affects negatively the implementation of obligations and insolvency of SMEs. The findings have a number of implications for the policy measures and mechanisms aimed at solving problems of insolvency of SMEs and their further development in the country. 

272-286 330
Abstract

The study in the article aims to improve the methodology for calculating the price of an option agreement. The subject is calculating the price of the option agreement for a real option with the right to sell/purchase. The hypothesis is that using a more objective calculation formula will increase the efficiency of making the corporation’s strategic investment and management decisions. The method of mathematical modelling is used to refine the methodology for calculating the price of an option agreement within the framework of the ways of real options and discounting cash flows. The article justifies and clarifies the calculation formulas for the price of an option agreement for a real option with the right to sell/purchase. It has been shown that an objective assessment of the value of this option is a powerful tool for making a strategic investment decision. The article’s novelty is the combination of the practice of hedging standards for transactions and methods of real options and discounting cash flows when developing a model for calculating the price of an agreement. The application of a more objective pricing formula for an options contract, limited to the specified project profitability index, confirms the hypothesis. A more objective assessment of the effectiveness of projects with the application of real options is a competitive advantage of the corporation due to the ability to benefit further from risk and uncertainty. The direction of future research is the formalization of the option pricing model for calculating net assets. 



ISSN 1997-9967 (Print)
ISSN 2663-550X (Online)