THE IMPACT OF INSTITUTIONAL ENVIRONMENT QUALITY ON THE DEVELOPMENT OF E-COMMERCE IN KAZAKHSTAN

This study develops a mathematical model to assess the relationship and mutual influence between institutional quality and the development of e-commerce. Institutional quality is measured using indicators such as the E-Government Development Index (EGDI), the Networked Readiness Index (NRI), selected sub-indices from the Index of Economic Freedom, and global governance metrics. The analysis employs Spearman and Kendall correlation coefficients, as well as multiple regression techniques. The results show that 43.4% of the variation in e-commerce development is explained by the NRI, and 37.8% by the Investment Freedom indicator. Furthermore, Control of Corruption (62.8%) and Rule of Law (28.3%) together account for 91.1% of the variation in Investment Freedom. Additionally, 97.4% of the total variation in the NRI is attributable to Investment Freedom (62.7%) and EGDI (34.7%). These findings contribute to a deeper understanding of how institutional quality shapes e-commerce development across countries. The study provides a data-driven framework for policymakers seeking to foster digital trade. By enhancing key institutional factors – such as investment freedom, governance quality, and digital infrastructure – governments, particularly in developing economies, can create an enabling environment for sustainable e-commerce growth. The research underscores the need for targeted institutional reforms to reduce barriers and support the digital economy.