Structural shifts in the economy and economic growth of the Kyrgyz Republic

Issue 55, 2024

Cholpon Askarova, Kalybek Choroev, Topchubai Kultaev

Received 17.10.2023, Revised 25.12.2023, Accepted 11.02.2024

https://doi.org/10.54919/physics/55.2024.234ol8

Abstract

Relevance. After three decades of independence, the economy of the Kyrgyz Republic has not yet been able to make a full-fledged transition to a market economy. Therewith, the development of technology around the world has significantly accelerated innovation, and economic and social processes, which means that Kyrgyzstan has less and less time to close the gap and needs to act quickly.

Purpose. To make a qualitative leap in development, fundamental structural shifts are needed, and the purpose of this work – to consider various areas of application of such shifts and develop recommendations for further steps in this area.

Methodology. The method of statistical analysis was used to explore the dynamics of economic indicators over the previous few years and the method of modelling was used to calculate one of the most important indicators of structural shifts in the economy – the coefficient of elasticity of labour-capital substitution.

Results. As a result, six key parameters of economic transformation – in sectors, regions, technology, ownership, fixed assets and fair competition – were explored and recommendations for future structural shifts were developed for each of them. In addition, the elasticity coefficient has been calculated and the advantages of using the proposed type of production function have been emphasised.

Conclusions. The practical significance of the work lies in the development of a more productive method of elasticity calculation than the conventional one, which considers changes in the indicators of the replacement of labour by capital. In addition, the prepared proposals on structural shifts in certain spheres of the national economy of Kyrgyzstan, considering the positive experience of several leading world economies, are of practical use.

Keywords: innovation; privatisation; free competition; international experience; production function; elasticity of substitution

Suggested citation

Askarova C, Choroev K, Kultaev T. Structural shifts in the economy and economic growth of the Kyrgyz Republic. Sci Herald Uzhhorod Univ Ser Phys. 2024;(55):2348-2360. DOI: 10.54919/physics/55.2024.234ol8

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