Determinants Of Chinese FDI Inflows In Kazakhstan

In recent years,Sino-Kazakh trade and economic cooperation has developed smoothly on the whole,and the field of cooperation has been expanding continuously.China's investment in Kazakhstan is of strategic significance and plays a positive role in the economic and financial development and industrial restructuring of the two countries on the platform of world economic and trade.In addition,China's direct investment accounts for a relatively large proportion of Kazakhstan's direct investment,so the cooperation relationship between the two countries is highly valued by the Kazakh government.In recent years,China's direct investment flows to Kazakhstan have obviously declined,and Chinese enterprises are facing various barriers in their investment activities.Therefore,it is of great significance to study the factors affecting China's direct investment in Kazakhstan and to put forward suggestions that can improve the investment relationship between China and Kazakhstan,so as to promote the development of trade between the two countries.This paper briefly describes the advantages and disadvantages of FDI,the b?sic the?ry of influ?ncing FDI,and on the b?sis of th?oretical ?nalysis,the main influ?ncing factors are selected.Next,the selected economic,institutional and political factors and their development process are discussed.Based on the panel data from 1997 to 2017,this paper makes a comprehensive and detailed analysis of the influencing factors of China's direct investment activities in Kazakhstan from the aspects of economic factors,political factors and institutional factors by using the ?utoregressive distribution lag model(ARDL model).The empirical results show that in the perspective of long-term equilibrium relationship,there is a positive relationship between GDP growth rate,trade openness and China's direct investment in Kazakhstan,while the legal index is negatively related to direct investment.From the perspective of short-term equilibrium relations,the factors that affect China's relations with Kazakhstan mainly include political stability,open trade system and legal system.