Analysis Of The Motivation Of Foreign Direct Investment In Kazakhstan

Foreign Direct Investment(FDI)have been playing an important role in the economic development of most developing countries it is claimed that FDI can create employment,increase technology development and improve the economic condition of the country.Therefore,most of these countries have taken various measures to attract FDI inflows,and Kazakhstan has not been left out in this struggle.This study examines the influence of various motives of the FDI inflow in Kazakhstan.The study reviews both FDI theoretical and empirical literature to identify the potential factors that motivate the inflow of FDI.The quantitative method was used in the process of collecting and analyzing data required in this study.Secondary data for 20 years(1995-2015)was employed to address the study objective.The empirical study used multiple regression with the annual rate of change in FDI as the dependent variable while natural resource availability,labor cost,political climate,level of GDP as the independent variable and control variable are inflation rate and exchange rate.The multiple regression model summary presented above indicates that the value of our R-squared is 0.81 and is significant;this implies that the regression model explains 81 % variation in FDI inflow motives in Kazakhstan for the period under the study.The F statistic's value is 2.875 which show that the model is a good fit,and the probability of F statistics is 0.0000;this indicates that the results are statistically significant.