Research On The Influencing Factors Of Energy Cooperation Between Kazakhstan And China

Kazakhstan and China have established diplomatic relationships for many years,which has led to frequent cooperation in investment and trade for the sake of the complementary resources of the two countries.The relationships between Kazakhstan and China strengthened through cooperation in various fields,such as the field of energy,which in turn has greatly promoted the development in economic and trade of the two countries.Energy,a special resource,often is of great strategic significance to a country.The two countries are deepening the cooperation of the energy industry on the basis of mutual benefits.This paper researches the possible factors that will affect the energy cooperation between Kazakhstan and China.Due to the research reviews the existing theories of the international trade and investment;eclectic paradigm ofinternational production theory,the factor endowment theory.Firstly,the influence factors of energy cooperation between Kazakhstan and China conducted on the theoretical analysis that Kazakhstan and China's good political and legal environments,mutually beneficial strategic policy,along with level of economic development and growth,last but not least superior geographical conditions and cultural integration degree of the important effecting factors of the energy cooperation between two countries.Therefore,by using the main points listed above this paper verifies the affecting effects on energy cooperation between Kazakhstan and China.In this paper the energy cooperation between Kazakhstan and China is divided into two aspects:Kazakhstan's energy product export to China,along with China's investment in Kazakhstan's energy sector.The time series data from the years 1998-2014 and 1998-2016 were selected respectively,thus vector auto regression model(VAR)was constructed.The affecting factors of energy cooperation between Kazakhstan and China were analyzed empirically.The conclusions are as follows:We come to the conclusion on energy trade between the two countries.Firstly,China's large-scale market demand and China's high regards for opening to the outside world are the important factors leading to the expansion of Kazakhstan's energy export to China.Secondly,as time goes on,China's large-scale market demands importance is becoming more and more relevant to Kazakhstan's export to China's energy product companies.Thirdly,China's dependence on foreign trade has little effect on China's import of energy products from Kazakhstan.We come to the conclusion on China's energy sector investment in Kazakhstan.Firstly,the expansion of Kazakhstan's market scale and the development of Kazakhstan's opening to the outside world will significantly promote the investment level of China's energy sector in Kazakhstan.Secondly,short term institutional factors have promoted China's investment in Kazakhstan's energy sector,but long term Kazakhstan is an obstacle to China's investment within its own energy sector.Thirdly,the most influential factor in China's investment in the energy sector is Kazakhstan market size.Its institutional factors and market availability have little to no effect on China's investment in Kazakhstan.