The Impact Of China's Direct Investment On Kazakhstan Economy Development: Evidence From Energy Sector

This thesis studies how Chinese energy investment affects Kazakhstan economy development,taking energy sector for example.China's rapidly increasing demand for imported fossil fuels has forced its government to expand its energy policy beyond its national borders.In order to enhance its access to energy resources abroad,the Chinese government has been facilitating the cross-border expansion of its national oil companies.Since 1997,China has built a strong political and economic partnership with resource-rich Kazakhstan,as Chinese National Oil Companies(NOC)have gradually increased their cross-border investment in the country‘s oil and gas sector.Assessing the increasing interaction between Chinese NOCs and other energy companies,the findings of this thesis suggest that Chinese energy investment in Kazakhstan has accelerated the economic growth of Kazakhstan.The study is an attempt to analyze the relationship between oil price,Gross Domestic Product(GDP)and China's Direct Investment(CDI)in energy sector in Kazakhstan on the basis of quarterly data from 2000Q1 to 2016Q4.We explored the role of oil price in the economy of Kazakhstan.In this study oil price is considered as the mediator of the relationship between CDI and Kazakhstan economy.GDP was considered as an indicator of economic growth of Kazakhstan.The key result shows price of oil has significantly positive effect on GDP in the short-term.Regression analysis was used in data processing.Based on the empirical results,the analysis shows that there is a positive relationship between the CDI and economic growth.Our findings provided evidence that Kazakhstan as a new developing economy attracts CDI.