Bridging sectors: how government spending enhances the embeddedness of information processes in Kazakhstan’s economy

Lyazzat Akilzhanova (), Dinara Jakupova (), Zhadyra Arkenova (), Zhansaya Zhunissova () and Ainur Mazina ()
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Lyazzat Akilzhanova: Karaganda University of Kazpotrebsoyuz, Karaganda, Kazakhstan
Dinara Jakupova: NCJSC Karaganda Medical University, Karaganda, Kazakhstan
Zhadyra Arkenova: Karaganda University of Kazpotrebsoyuz, Karaganda, Kazakhstan
Zhansaya Zhunissova: Karaganda Higher Polytechnic College, Karaganda, Kazakhstan
Ainur Mazina: Karaganda State University named after E. A. Buketov, Karaganda, Kazakhstan

Access Journal, 2025, vol. 6, issue 3, 483-497

Abstract: The integration of digital technologies and artificial intelligence into national economies is increasingly recognized as a driver of economic modernization and cross-sectoral connectivity. In Kazakhstan, government expenditure has played a central role in building digital infrastructure and supporting the digital transformation of key sectors. Objectives: This paper aims to assess the impact of government expenditure on the intersectoral embeddedness of information processes in Kazakhstan’s economy from 2001 to 2023, with a focus on how targeted public investment fosters digital integration across industries. Methods/Approach The analysis employs annual Input-Output Table data and utilizes the dependency coefficient as a measure of information process integration, applying the Autoregressive Distributed Lag (ARDL) model to estimate short- and long-term effects while controlling for macroeconomic variables such as inflation and unemployment. Results: The results show that increased government spending significantly enhances the integration of information processes with other sectors of the economy, confirming the positive impact of public investment in digital infrastructure, digitalization of public services, and support for AI adoption. Conclusions: These findings underscore the importance of sustained, well-targeted government expenditure in accelerating digital transformation. Policy recommendations include prioritizing the expansion of digital infrastructure, promoting interoperability, investing in digital skills, and ensuring that the integration of AI technologies is ethical and inclusive across all sectors of the economy.

Keywords: Government expenditure; information processes; sectoral embeddedness; Digital transformation; artificial intelligence; dependency coefficient; policy recommendations (search for similar items in EconPapers)
JEL-codes: J24 O15 O33 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:aip:access:v:6:y:2025:i:3:p:483-497

DOI: 10.46656/access.2025.6.3(1)

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