Chinese Direct Investment In Kazakhstan Because Of Research And Economic Benefits

With the growing strength of China’s economy, foreign direct investment is alsodeveloping rapidly. Kazakhstan is China’s largest trading partner among five Central Asiancountries. Kazakhstan is the country with the fastest, the strongest economy, rich in naturalresources. In recent years Kazakhstan has economic development and Chinese directinvestment has grown rapidly.This research work is based on international investments and economic growththeories, to explore history and current situation of Chinese enterprises and its investmentsin Kazakhstan, and analyzes direct investment environment. The paper performs in-depthanalysis of dynamic Chinese companies investing in Kazakhstan. This article has usedmethodological approach and empirical analysis combining economic growth data andfigures of Chinese companies investing in Kazakhstan. These data are calculated byapplying EViews software which show how direct investments of Chinese enterprisesaffect economic growth of Kazakhstan. Through research and analysis, draw thefollowing conclusions: The first, China has many reasons and factors investing inKazakhstan, such as access to resources, circumvent trade barriers, looking for newmarkets, geopolitical factors, institutional factors and government policies between twocountries. The second, the short-term effect analysis results shows that every1%ofChinese direct investment increases GDP of Kazakhstan on0.351349%. The resultsillustrate the long-term effects of direct investment in China increased by1%per yearlagged GDP will increase by0.21%, which is consistent with the meaning of economicsmarginal contribution rate. Chinese direct investment in Kazakhstan has also long-termpositive effects, FDI increasing in Kazakhstan will promote economic growth. The third,Chinese enterprises have become one of the most important foreign investors inKazakhstan, industry investments include mining, transportation, professional services,construction and so on. Chinese enterprises’ investments in Kazakhstan continue todevelop in agriculture, building materials, power plant construction, among others. Finally,the chapter relevant policy recommendations in order to better guide Chinese directinvestment in Kazakhstan.