The Impact of Digitalization and Investment on Agricultural Development in Kazakhstan

Abstract

Today, digitalization and investment are becoming key drivers of agricultural transformation, but their impact on the agro-industrial sector remains controversial. The study aims to determine how investments in fixed assets, digital literacy, and Internet penetration affect the volume of gross agricultural output in Kazakhstan. The initial data includes panel data from the Bureau of National Statistics of the Republic of Kazakhstan for 2010-2023. The study uses multidimensional linear regression to assess the contribution of each factor (investments in fixed assets, the level of digital literacy, Internet penetration, and the use of mobile phones and computers) to the formation of gross agricultural output. The findings indicate that investments in fixed agricultural assets exhibit a positive but statistically insignificant relationship with agrarian production (β = 4.4474, p = 0.2221). Similarly, mobile phone use and Internet penetration in rural areas do not show a significant correlation with the growth of the agricultural sector. In addition, negative coefficients for digital literacy and Internet activity in rural areas have been identified, which may indicate barriers to introducing digital technologies into the agro-industrial complex. The novelty of this research lies in its empirical evaluation of digitalization’s role in agricultural development within a transitional economy, emphasizing the need for targeted policy interventions. The results suggest that investment efficiency, digital skills training, and improved technological adoption should be prioritized to maximize agricultural productivity. Further research is needed to explore long-term investment effects and sector-specific impacts to refine policy recommendations.