Assessing the effectiveness of Kazakhstan’s special economic zones: a comparative institutional analysis with China

Abstract

This article examines the performance of Kazakhstan’s fourteen Special Economic Zones (SEZs) and evaluates the institutional, infrastructural, and governance factors that contribute to their highly uneven outcomes. While SEZs are intended to promote industrial diversification, regional development, and integration into global value chains, empirical evidence from the Asian Development Bank, the Supreme Audit Chamber, national statistics, and SEZ Union data shows that only a small subset demonstrates meaningful economic impact. The study involves a qualitative document analysis and comparative framework, drawing on international SEZ theory and China’s well-established SEZ model. The findings reveal that most Kazakhstani SEZs underperform due to incomplete infrastructure, weak governance autonomy, low foreign direct investment, unclear sectoral specialization, limited export orientation, and high fiscal cost per job created. Comparing Kazakhstan’s SEZ system with China’s highlights critical gaps in institutional capacity, regulatory stability, and investor services. The article argues that improving SEZ effectiveness requires strengthening governance autonomy, ensuring timely infrastructure delivery, implementing cluster-based development strategies, and increasing transparency through public audit mechanisms. These reforms are essential for aligning Kazakhstan’s SEZ policy with broader national goals of sustainable industrial and regional development.