Title: Conceptual model for managing sustainable development of the financial market based on fuzzy cognitive maps: case study of Kazakhstan

Authors: Yuliya Nichkasova; Kulyash Sadvokassova; Nursultan Kayupov

Addresses: Faculty of Economics, L.N. Gumilev Eurasian National University, 9, Koshkarbaev Av., Astana, 01001, Kazakhstan ' Russian Academy of Natural Sciences, 101000, P.O. Box 47, Moscow; Department of Economics, L.N. Gumilev Eurasian National University, 010008, 13, Kazhmukana, Apt. 11, Astana, Kazakhstan ' Department of Mathematical and Computer Modeling, Faculty of Mechanics and Mathematics, L.N. Gumilev Eurasian National University, 01001, 21, Baraeva, Apart. 51, Astana, Kazakhstan

Abstract: Kazakhstan's financial market, being relatively small in size, does not have the ability to compensate for the needs of economic entities for financing development through market mechanisms. Therefore, a decision support tool is needed to ensure continued growth. The solution was to use a fuzzy cognitive map and a method for constructing indicators of the system's sustainable development which included a set of three types of subsystem: economic, financial institutions, and financial markets. The sample, containing data from between 1993 and 2018, uses 31 indicators of the economic development of Kazakhstan to reflect the ability of the system to develop in terms of depth, accessibility, efficiency, stability, integration, innovation, and cognitive approach of the economic agents. The current state of the financial market for the period up to 2025 indicates initial shallow depth and slow progress requiring increased investment, GDP growth and reduced inflation to stimulate its development.

Keywords: economic system; financial market; financial institution; financial indicators; sustainable development; fuzzy cognitive map; FCM; conceptual model; decision support system; strategic decisions; Kazakhstan.

DOI: 10.1504/IJEPEE.2021.111937

International Journal of Economic Policy in Emerging Economies, 2021 Vol.14 No.1, pp.1 - 38

Received: 25 Apr 2019
Accepted: 31 Dec 2019
Published online: 21 Dec 2020 *

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