Financial market sustainable development of Kazakhstan: scenario approach based on fuzzy cognitive maps

ABSTRACT

Access to financial resources is the main constraint for sustainable economic growth in Kazakhstan. Kazakhstan’s financial institutions, being relatively small in size and unbalanced, cannot finance development through market mechanisms. The model that reflects the system’s sustainable development was constructed based on the fuzzy cognitive map to consolidate 31 indicators of three types of the subsystem: economic, financial institutions, and financial markets to reflect the viability and balance of the system development. The time-series data of Kazakhstan’s economic and financial development of Kazakhstan from 2014 to 2019 with prognosis to 2025 was used. Based on the results of our research, we concluded that the implementation of policies for sustainable development should include not only specific aims for the financial market but also for financial institutions and the economy. Moreover, sustainability is reinforced by the development of integration, innovativeness, and accessibility, which forms the key aspects of financial system state policy development.

KEYWORDS:

• Economic system
• financial market
• financial institution
• financial indicators
• sustainable development
• fuzzy cognitive map
• decision support system
• scenario approach
• Kazakhstan

Acknowledgements

We express our gratitude to Duman Seilkhanova and Tabyldy Kayupov thanks to whom this work has been done. Thanks to two anonymous referees for helpful criticisms and suggestions.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Correction Statement

This article has been republished with minor changes. These changes do not impact the academic content of the article.