Custom Union Of Russia,Kazakhstan,Kyrgyzstan,Belarus And Armenia.Advantages For Kazakhstan

The customs union of five countries can not only promote the economic development,trade volume and investment volume of member countries,but also urge enterprises to adopt advanced technology and increase the added value of commodities.The customs union is expected to make the economic structure of the member countries more diversified and reduce the negative impact of the multinational corporations on the economy of the member countries.From the perspective of economic effects of trade,the impact of the establishment of five countries custom union on the investment environment,employment status and income level of member states is analyzed in this paper.According to the data of official statistical websites of Member States,the economic indexes of member countries are calculated.Then it elaborates the history of the five countries custom union,introduces the operation mechanism of the customs union,the trade between the Member States and the trade with the non-member countries.Subsequently,the comparative advantage index is used to analyze the comparative advantage.The trade gravity model is set up to analyze the trade potential between Russia and Kazakhstan and their trading partners so as to evaluate the economic effect of the customs union.This study shows that after the establishment of the customs union,the foreign investment of the member countries has increased significantly,and the customs union trade has produced a certain dynamic economic effect.Foreign investment in the member countries of the customs union will increase substantially.Russia and Kazakhstan all belong to the underdeveloped countries and the investment space is very large,and the resources and products are very complementary to the main investment countries.On the whole,the political situation of the three countries is stable.And with the establishment of the customs union and the further improvement of the investment laws and regulations,the investment environment will also be optimized.This strengthens the investment confidence of foreign investors in the three countries to a certain extent.