Energy Price and Economic Growth in Kazakhstan, Uzbekistan, and Azerbaijan

Abstract

Sustained economic growth in any nation is primarily propelled by an expanded industrial sector. Crude oil stands out as a vital prerequisite for a thriving industrial sector, making an increase in oil prices initially impact the industrial sector and subsequently influence economic growth. Therefore, the utilization of fossil oil by Kazakhstan, Uzbekistan, and Azerbaijan republics from 1991 to 2015, comparing it with the global average was approximately 1.3 times higher than the world's average, underscoring the significance of oil for these nations. Specifically, oil consumption in these countries steadily rose from 1992 to 2008, with a slight decline post-2009, nonetheless, the oil consumption of Kazakhstan, Uzbekistan, and Azerbaijan countries remains significantly higher within Central Asia, highlighting oil and gas as a key driving force for their economies.