The Study Of The Sites And Industries And Their Features Of Chinese Direct Investment In Kazakhstan

Currently, FDI is growing even faster than international trade, which has been the major mechanism connecting national economy (World Investment Report). Even countries previously closed to foreign investors, for instance China, have recognized the economic benefits of foreign investment and have opened their borders to foreign capital. Competition to attract FDI involves not only developed countries, but also developing countries. Like Kazakhstan which we did research on this paper.This paper investigates the sites of FDI in Kazakhstan generally, and one part especially for detailed description about Chinese direct investment in Kazakhstan. The location, industries and their characteristics. Also tried to show the estimation for the further future using the Bound Testing on ECM model based on natural resources. For Kazakhstan FDI was an engine to restore the economy after the collapse of Soviet Union. And by the econometric result it shows, resource development projects have a positive causal effect on foreign direct investment in Kazakhstan.The key motives driving Chinese investment in the emerging countries are access to natural resources and the expansion of markets. Investments aimed at acquiring strategic assets have also been increasing in the last few years. Mongolia, Russia and Kazakhstan are currently among the largest FDI recipients in the region. Rich natural resources in Central Asia hold considerable attraction for these three largest oil companies in China-CNPC/PetroChina, China Petroleum&Chemical Corporation (Sinopec) and CNOOC. In Kazakhstan, China is directly involved in extracting and transporting Kazak oil to China.