The Nonlinear Model of Intersectoral Linkages of Kazakhstan for Macroeconomic Decision-Making Processes in Sustainable Supply Chain Management

Seyit Kerimkhulle (), Natalia Obrosova (), Alexander Shananin and Gulmira Azieva
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Seyit Kerimkhulle: Department of Information Systems, L.N. Gumilyov Eurasian National University, Satpayev Street 2, Astana 010008, Kazakhstan
Natalia Obrosova: Moscow Center for Fundamental and Applied Mathematics, Lomonosov Moscow State University, GSP-1, Leninskie Gory, Moscow 119991, Russia
Alexander Shananin: Moscow Center for Fundamental and Applied Mathematics, Lomonosov Moscow State University, GSP-1, Leninskie Gory, Moscow 119991, Russia
Gulmira Azieva: Department of Information Systems, L.N. Gumilyov Eurasian National University, Satpayev Street 2, Astana 010008, Kazakhstan

Sustainability, 2022, vol. 14, issue 21, 1-21

Abstract: We provide a nonlinear model of intersectoral balance with constant elasticity of substitution (CES) production functions of industries and CES utility function of final consumer for the study of intersectoral linkages in the Kazakhstan economy. The model is formalized in terms of the primal problem of resource allocation and the corresponding Fenchel dual problem which solution gives costs of inputs of industries in a supply network. We identify the model with the actual data of the Input-Output tables of Kazakhstan and estimate the elasticity of substitution of production factors for the aggregated industry complexes. With the help of developed framework, we evaluate the inter-industry financial flows in the aggregated supply network for the period 2013–2020 and compare the results with the actual data of Kazakhstan. The developed framework can be used to support decision-making processes in sustainable supply chain management in a situation of the government economic policy change and external shocks. Using the developed framework, we evaluate the risks for Kazakhstan’s supply chains in scenario of sharp weakening of the national currency.

Keywords: resource allocation problem; Fenchel duality; Young transform; CES production function; elasticity of substitution; input–output tables; sustainable supply chain management; shock; scenario calculations (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:21:p:14375-:d:961642

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