An Institutional Risk Analysis of the Kazakh Economy
Sultan Orazbayev () and
Authors registered in the RePEc Author Service: Oliver Röhn ()
No 70, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich
This paper investigates the impact of institutions or structural policies on the volatility of income or GDP per capita in transition countries and in Kazakhstan in particular. In the first part of the paper we compare Kazakhstan’s institutional framework with other transition economies based on a broad range of indicators. Using factor analytical tools to reduce the dimensionality of the indicator space we find that in general Kazakhstan’s institutional quality ranks among the lowest of the 24 transition countries investigated. Reform progress was mainly achieved in infrastructure. In the second part of the paper we employ state-of-the-art Bayesian Model Averaging (BMA) to identify institutional and macroeconomic policy areas that have the strongest impact on output volatility in transition economies. The analysis shows that good legal and administrative institutions can help smooth output volatility. Moreover, we also find that inflation and current account volatility and to a smaller extend exchange rate fluctuations are important determinants of output volatility.
Keywords: Institutions; output volatility; development; transitions economies; model; uncertainty; Bayesian Model Averaging (search for similar items in EconPapers)
JEL-codes: E02 E30 O11 P30 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ces:ifowps:_70
Access Statistics for this paper
More papers in ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().