The Impacts Of Foreign Direct Investment On Kazakhstan's Economic Growth

In today's climate,Foreign Direct Investment(FDI)is developing with incredible and forcing speed linked directly to International Trade.This has played a significant part in developing the national economy.Even countries that were earlier closed to foreign investors,in particular China have recognized the huge economic advantages and potential profits of Foreign Direct Investment and have opened their borders to incoming foreign capital and share.Competition to attract FDI involves not only developed countries,but also developing countries(DC).The selected(DC)country for this research is Kazakhstan,quite a new participant in the rivalry to attract foreign investment,a country providing for foreign investors many potential benefits but also it has some potential risks.This paper attempts to define factors affecting the opportunities of FDI in Kazakhstan through the eyes of foreign investors.This research attempts to examine the impact of Foreign Direct Investment on the economic growth of Kazakhstan.The researcher did analysis based on the data from 2005 to 2015 using regression model(DF test,Dickey-Fuller test),the empirical result based on capital stock(K),labour(L),foreign direct investment(FDI),and one-lagged year of the previous(FDI)effect to the coming year FDI(-1),and net export(NX)provide a good description of economic growth in the case of Kazakhstan during the period of the analysis.All the explanatory variables are significant and positive sign,which are consistent with the theory and other previous empirical findings.These discoveries suggest that the government should strengthening policies on engrossing more FDI in order to ensure the economic growth.In addition,government should foster more export performance by enlightening investment climate.Quality and approachability of infrastructure;extent of government regulation;taxation;admittance to and cost of financing;access to,cost and quality of factors of production;degree to which the government creates a level playing field;governance and corruption;and security must be preserved and taken care of.