The Economic Impact Of FDI In Central Asia

1990s, the Central Asian countries have been independent one by one. After theSoviet Union collapsed, Russia’s domestic problems piled up, leg to stand on,Central Asia appeared political and economic vacuum. Countries around the worldcome to enter one after another. As the world have a deepen understanding of theregion’s strategic position gradually, Countries, especially the major powers’competition is becoming increasingly fierce. After9.11“incident”, the central Asia’sspecial status of counter-terrorism pattern in the international becomes more salient.The United States with the war in Afghanistan as an opportunity completed theeconomic, political and military presence in central Asia. As the eu and central Asia’sborder has become increasingly close. The European Union expanded and strengthenthe cooperation with central Asian in areas and measures from a strategic vision.Countries such as Japan, Turkey, Iran, penetrated in various forms, actively expandit’s interests and influence in central Asia.Central Asia as the "heart" in the world, Has an important strategic position,play a buffer role in the international geopolitical. China has an important strategicinterests in this place, the stability of China’s northwest frontier, Safety of China’senergy strategy, China’s economic stability and sustainable development are closelyrelated with central Asia.Economy is the foundation of participate in internationalcompetition, with the condition of big game becoming increasingly fierce, to win theadvantageous position in central Asia game for China, strengthen its investment,trade and other economic cooperation is the necessary. It is based on the power gameand the background of economic globalization, using panel data model from theindustrial structure, foreign trade, employment tested the influence of FDI toKazakhstan’s economy empirically. empirical analysised the impact of FDI to theeconomic growth in central Asian countries. Using grey correlation model of FDI’sinfluence for industrial structure to Uzbekistan, Kyrgyzstan’s foreign trade andemployment had empirical test.to study the effect of FDI to economy in centralAsian countries.The empirical results show that the effect of FDI to Kazakhstan industrialstructure adjustment is positive and obvious, have positive effect on export, import,import and export, differences among specific commodity type. The influence ofFDI to employment is also considerabl, for different industry employment differenceexists, which contact with its industry characteristics, national conditions and the strategic choice. The influence of FDI to employment of Kyrgyzstan is positive andsignificant, specific industry commodity type is different, the impact on imports isgreater than the exports. Uzbekistan, the introduction of FDI not formed a significantdifference in different industries, industrial structure have not taken place obvious tilt.The influence of FDI on economic growth in the central Asian countries, Kazakhstanis the largest, Turkmenistan is the second, Uzbekistan, Kyrgyzstan and Tajikistan issmallest. Which have a relationship with the central Asian countries’ resources andenvironment, legal environment, investment policy, economic development and soon. Finally, given the conclusion and enlightenment. In the process of centralAsia investment in China should be paid attention to the differences of differentnational investment, appropriate orientation for labor value. Mineral energy field forkazakhstan’s direct investment is still a important areas. construction hotel and thehotel industry is an important field to invest in kyrgyzstan. manufacturing industry isthe strategic choice for China to invest in central Asia, and innovative agriculturewill be one of the most promising industry. China should continue to increase themagnitude of the direct investment of central Asian countries. Kazakhstan,Turkmenistan, will continue to be the most important market.