Abstract
This paper analyses total factor productivity (TFP) and domestic competition among firms in Kazakhstan.We show that TFP in many industries falls significantly from 2009 to 2017.At the same time, 3 to 10 of the largest firms occupy a significant market share in most industries, demonstrating the elements of oligopolistic competition.We estimate the impact of various financial indicators and variables, such as subsidies, R&D, and transportation costs on firm-level TFP.The results show that increased investments, profits, wages, subsidies and the presence of employees under 30 years of age or with higher education have a significant positive effect on TFP.In addition, the uneven distribution of subsidies among firms also contributes to the development of a monopoly in the market.Statistics show that five companies in the market receive up to 80% of subsidies in manufacturing and agriculture, which aggravates the market power of these firms.