Abstract
Kazakhstan’s economy remains dependent on the extractive sector, which poses risks of instability due to fluctuations in global commodity prices. In the context of globalization, the integration of the manufacturing industry into global value chains (hereinafter referred to as GVCs) is becoming an urgent task that will increase the competitiveness of the national economy. The purpose of this study is to quantify the potential of the manufacturing sector and assess the relationship between indicators of GVCs and main indicators of economic growth. Statistical data from the Bureau of National Statistics of Kazakhstan and international rating organizations like the OECD, Asian Development Bank, and Islamic Development Bank were used for this study. Regression modeling, reliability analysis using Cronbach’s alpha, and analysis of variance were used to analyze quantitative data. The results showed that the volume of non-primary exports had a statistically significant impact on GDP (p<0.05) and labor productivity (p< 0.01), but the share of manufacturing in the economy remained low and the process of export diversification and integration into global supply chains was slow. This study highlights the need for active government policies in the development of the manufacturing sector, attracting investment in non-resource industries, and deepening participation in GVCs. The findings can be used to formulate industrial policy strategies to reduce dependence on raw materials and create sustainable conditions for economic growth. Promising areas for further research include the analysis of factors affecting investments in non-primary products, the study of structural reforms in the manufacturing industry, and the assessment of government support’s impact on the development of the non-primary sector.