The Impact of Government Expenditure on Information Processes and Economic Growth of Kazakhstan: Empirical Analysis and Policy Recommendations

Abstract

This study investigates the impact of government management on information processes within Kazakhstan's economy using the Input-Output Table (IOT) for the period 2001-2023. The IOT framework allows for the assessment of inter-industry dependencies, highlighting direct and indirect effects of information processes on sectors such as finance, healthcare, education, and logistics. The study employs an Autoregressive Distributed Lag (ARDL) model to analyze the relationship between government expenditure and the gross output of information processes, incorporating control variables such as inflation, unemployment, and dependence coefficients. The results indicate a significant long-term positive relationship between government spending and information process outputs, with a strong multiplier effect. However, short-term fluctuations in government expenditure may lead to temporary reductions in output. The study’s findings underscore the importance of strategic government investments in ICT infrastructure to foster economic growth. Additionally, policy recommendations include stabilizing government spending and monitoring inflation’s potential adverse effects on information processes.