Research On Kazakhstan’s Oil Sector And Economic Development

Kazakhstan ranks as one of the largest oil and gas exporters in the world and the energy sector becomes its core industry. After more than20years of independence, Kazakhstan develops rapidly for its rich oil reserve. This country’s proven oil reserves were estimated at30billion barrels by the Oil and Gas. The oil sector brings Kazakhstan a huge amount of wealth. Rich reserves of oil keeps this sector leading the position in production and export for quite a long time. Though Kazakhstan is independent for more than20years, but the state system, opening up policy and monopolistic economic structure, etc., make this country closer to a Dutch disease. We find that Kazakhstan’s economy is now facing several problems such as unhealthy economy, deindustrialization, the lack of high qualified of human capital, the decline of manufacturing sector, misaligned trade structure and the foreign exchange rate appreciation during oil sector booming. All the above evidence that Kazakhstan has a mild Dutch disease. In order to recover from Dutch disease, we outline a few ways to help Kazakhstan to overcome these negative economic phenomenons, including setting up of National Fund of the Republic of Kazakhstan (NFRK), economic diversification, improving of international trade and making the economy more open, development of2050Strategy for Kazakhstan’s energy sector.Though facing problems, in this paper, we still believe in an optimistic future of Kazakhstan’s economy. The relationship between oil sector and economic growth is to be promoted.