THE IMPACT OF JOINING EURASIAN ECONOMIC UNION ON THE INDUSTRIAL SECTOR OF KYRGYZSTAN

Abstract

This research paper aims to address the dearth of studies evaluating the impact of Kyrgyzstan's Eurasian Economic Union (EAEU) membership, with a specific focus on its industrial sector. The study employs an empirical analysis using a difference-in- differences model, utilizing data on key macroeconomic indicators pre- and post- membership. By testing the hypothesis that joining the EAEU positively affects Kyrgyzstan's industrial sector, the research aims to provide valuable insights for policymakers in formulating supportive mechanisms for the sector's development. Recognizing the industrial sector as a fundamental pillar for social and economic progress, especially in low-income countries, this research contributes to a better understanding of the consequences of economic integration within the EAEU framework. The results of the empirical analysis conducted using the difference-in- differences method displayed a negative influence of Kyrgyzstan's accession to the Eurasian Union, albeit statistically insignificant. However, this topic presents opportunities for further development and examination concerning industry segments.