Recent Developments in the Short-term Employment in Kazakhstani Firms

The paper analyses data from the survey of 701 Kazakhstani firms over a nearly 2-year period from the second quarter of 1998 through the fourth quarter 1999, making it possible to examine employment changes for period prior to, during and following the Russian financial crisis of August 1998. The survey reports the major constraints on productivity growth and market penetration facing enterprises in transition. In addition, the predictions of the theoretical propositions of the employment behaviour of firms in transitional economies are tested by cross-section regressions. The results indicate that changes in ownership per se did not cause a significant difference in the behaviour of newly privatised enterprises in Kazakhstan. However, there is some evidence of a differential effect of privatisation on export-oriented enterprises. This is reflected in differential responses among the enterprises that were most exposed, through their trade linkages, to the recent Asian and Russian financial crises.