Conceptual model for managing sustainable development of the financial market based on fuzzy cognitive maps: case study of Kazakhstan

Abstract

Kazakhstan’s financial market, being relatively small in size, does not have the ability to compensate for the needs of economic entities for financing development through market mechanisms. Therefore, a decision support tool is needed to ensure continued growth. The solution was to use a fuzzy cognitive map and a method for constructing indicators of the system’s sustainable development which included a set of three types of subsystem: economic, financial institutions, and financial markets. The sample, containing data from between 1993 and 2018, uses 31 indicators of the economic development of Kazakhstan to reflect the ability of the system to develop in terms of depth, accessibility, efficiency, stability, integration, innovation, and cognitive approach of the economic agents. The current state of the financial market for the period up to 2025 indicates initial shallow depth and slow progress requiring increased investment, GDP growth and reduced inflation to stimulate its development.