Research Of The Impact Of Chinese Foreign Direct Investment On Economic Growth In Kazakhstan

In the current 21st century there have been a lot of changes in the global economy,where the Foreign Direct Investment(FDI)plays a significant role.The theoretical framework shows that FDI has a positive impact on economic growth in its host country on micro and macro levels.FDIs are one of the most important investments in establishing,increasing stability,and long term relations between economies.Since the independence of Republic of Kazakhstan,natural resources have become an important factor of economic growth of the country,with an in large part of it is in the development of oil and gas resources.Since then,the Kazakh government strategically chose to attract foreign investment into the energy sector and has successfully designed its"Multivectoral" energy policy with neighboring countries in regards to energy transportation.In this regard,focusing on Kazakhstan's energy sector,this work reviews the major positions regarding the impacts of Chinese FDI and the importance of One Belt One Road(OBOR)to Kazakhstan.Special attentions paid to the development of economic cooperation between Kazakhstan and China in the fields of energy and investment.Energy complex strongly determines the structure of the economy of Kazakhstan and now it is the most influential factor of economic development.Therefore,taking into account the importance of FDI in transition economies,the purpose of this thesis is to examine in one hand the impacts of Chinese FDI in Kazakh energy economic sector and its possible effect to national growth,and in other hand determine which factors are capable to attract Chinese FDI into Kazakhstan.The work employed a qualitative method research approach for describing and exploring new sustainable trends that have been emerging for several years and will be determined the development of the inflow of Chinese FDI in Kazakhstan in the near future.The framework is developed through extensive literature review and is processed by results from the interview.Theories such as Eclectic Paradigm or OLI advantages and Uppsala models are used in this work to find the main macro factors considered as important determinant of Chinese FDI in the Kazakhstan.In the end of work,author will aim to give recommendations with regard to what strategies should Kazakh government adopt in the light of these trends and challenges.