THE ROLE OF EXTENSIVE MARGIN AND INTENSIVE MARGIN IN KAZAKHSTAN’S EXPORT GROWTH

Abstract

Decomposition of country’s export gives us to opportunity to understand the sources of exports growth. This paper decomposes Kazakhstan export into four margins extensive, intensive, price and quantity. We analyzed Kazakhstan’s export performance using data at the 6-digit level over period 2004-2013. Kazakhstan export showed good results during this period, but this growth was not sustainable. We employed two methods for decomposition of exports, count method and method of shares. Our investigation showed that intensive margin of exports and quantity component of exports was important contributor of the export growth. The result further pointed out that final goods are more important in exports growth than these goods were a decade ago.