EXPERT OPINION
Direct effect
Indirect effect
Induced
effect
At each subsequent stage, the effect
fades and the impact decreases
exponentially, because:
purchased products and services
are mostly imported (for example,
foreign equipment and its spare parts,
fuel, etc);
the population saves part of its
income;
salaries to employees – KZT 20;
a portion of tax receipts is
channeled to imports and public debt
financing;
not all income is reinvested in
business development;
taxes – KZT 20;
other reasons.
gas industry of Kazakhstan in the
context of sustainable development.
This contribution is evidenced
by the production of goods and
services, growth of GDP, support
for employment, generation of
earned income of the population
and increased payments to budget
and non-budget funds of Kazakhstan
through the entire value chain of the
oil and gas industry:
•The direct contribution to the
production of goods and services
in 2012 amounted to KZT 10,792.2
billion, and the total contribution
was KZT 19,200.5 billion, which is
39.9% of all goods and services in
Kazakhstan.
other expenses – KZT 15; and
profit – KZT 5.
This is the industry’s direct
contribution to the country’s economy.
However, it creates a snowball effect
that spreads throughout the economy:
KZT 40 spent on purchasing
products and services within the
country generates revenue for other
industries;
KZT 20 of salary is spent by
employees of the industry companies
and generates revenue for firms
offering goods and services to the
population;
KZT 20 of taxes in the state
budget is redistributed in the form of
salaries to budget-sector employees
or public procurement, and thus
returns to the economy and generates
income for other companies;
KZT 5 of profit, if reinvested, can
also generate an indirect contribution
to the economy.
Most often, four indicators are used
to analyze the total socio-economic
contribution:
support for employment by
creating new jobs;
generation of earned income of
the population;
contribution to the country's GDP
growth (often called the gross value
added);
contribution to public finances.
Example 1. KAZENERGY
Association 2
To inform a broad number of
stakeholders both within and outside
Kazakhstan about the contribution of
Kazakhstan’s oil and gas industry to
the country’s sustainable development,
KAZENERGY Association published
the report 'Social responsibility of the
oil and gas industry of the Republic
of Kazakhstan in 2012-13'. One of
the main purposes of this report is
to review the key socio-economic
indicators for 2012-13 of the oil and
• The direct contribution of the oil and
gas industry to Kazakhstan’s GDP in
2012 amounted to KZT 6,066.8 billion,
or 22.1% of the country’s GDP. The
total contribution was KZT 10,983.4
billion, or 40.1% of GDP.
•All taxes and levies received by the
budget from oil and gas companies,
their suppliers and contractors in
2012 amounted to KZT 3,466.8 billion,
or 46.2% of all tax revenues in the
country.
•The industry’s direct contribution
to employment was 128.9 thousand
people in 2012, and the total
contribution was 587.0 thousand,
or 6.9% of the total number of all
employed people in the economy
of Kazakhstan, which is 8.5 million
people.
•The total contribution of the oil and
gas industry to earned income of the
population in 2012 was KZT 873.7
billion, or 8.6% of all earned income in
Kazakhstan. The direct contribution of
the industry’s companies amounted to
KZT 343.8 billion.
supported by EUROBAK
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