Determinants for increasing the productivity of single-industry towns in Kazakhstan

The development of single-industry towns is one of the most important aspects of establishing an effective economy for many post-Soviet states. Single-industry towns (monocities) significantly increase the level of private sector competitiveness, but present a challenging socio-economic situation, considering the vulnerability and dependence of the locality on the welfare of the single industry and on the city-forming enterprise. Sustaining the stability of monocities is the foremost objective for safeguarding the territorial economy. This study explores the factors that influence the productivity of single-industry towns in Kazakhstan using panel data from 2019 to 2022. We construct our econometric model based on previous research, including entrepreneurial, environmental, technological, infrastructural and intellectual factors in 26 monocities in Kazakhstan. The findings reveal that improving infrastructure and securing quality local human resources promote productivity in the single-industry towns of Kazakhstan, the statistical significance of which is consistently demonstrated in different models. In contrast, entrepreneurship, environmentally friendly and research and development activities do not appear to significantly influence productivity. To achieve direct productivity growth in the short-term, the government should focus on improving infrastructure and preventing brain drain as the first priority. © (2023), (Hungarian Central Statistical Office). All Rights Reserved.