The determinants of SME development in the regions of Kazakhstan

Abstract

This paper analyses the regional SME development and estimates SME productivity determinants using panel data. Productivity of SME was estimated as a ratio of SME output and employed in SME. As determinants of SME industry output, investment to industrial sectors, average monthly wages, exports and imports in regional terms were used in the empirical model. The results of analysis using panel data estimations showed that most significant effects to SME development, expressed in productivity were international trade indicators, investment to industries and wages.