Abstract:
сссThe relationship between economic growth and financial development has long
been a topic of interest for economist. Continued empirical research on Kazakhstan’s financial sector,
using methodologies like Vector Autoregression (VAR) models and Granger causality tests, is used
to track the evolving relationship between financial development and economic growth. By
addressing current challenges and deepening reforms, Kazakhstan can strengthen this linkage, driving
long-term economic resilience and diversification. The results indicate minimal causal connections
among GDP, FDI, and the unemployment rate. Additionally, the findings imply that stock market
performance may not be closely linked to the country’s external account metrics, underscoring the
role of other factors in shaping their behavior. Furthermore, the empirical evidence suggests that
initiatives aimed at strengthening the current account balance could potentially influence the
unemployment rate.
