| This article discusses how China's foreign direct investment from 1993 to 2014 affected Kazakhstan's economic development and motivated foreign investors to invest in Kazakhstan.Finally,came to the conclusion: foreign direct investment for the country's economic growth and China's direct investment in Kazakhstan to study issues.Significance of research:(1)The ideas,viewpoints,methods,and investment path options proposed in this paper will provide theoretical evidence for the further study and resolution of this issue,and have important theoretical and practical significance for promoting China's investment in Kazakhstan.(2)Further,strengthen the investment and economic cooperation between China and Kazakhstan in various fields.Political exchanges between the two countries are the foundation of economic and trade exchanges,and only then can the two countries invest in each other.Judging from the current bilateral trade and investment situation between China and Kazakhstan,the cooperation area has been continuously expanded to provide a reference for further investment and trade between China and Kazakhstan.(3)It is helpful to study the economic effects of China's investment in Kazakhstan.In order,to provide reference for the development of direct investment in Kazakhstan,the study of Sino-Kazakh foreign direct investment effects can better analyze the factors that influence China's investment in Kazakhstan.Therefore,China provides more theoretical basis for the analysis of the direct investment in Kazakhstan.Research purpose and main content.Under the high attention and leadership of the two governments of Kazakhstan and China,the strategic partnership between the two countries has been steadily developed in recent years.Under the background of the rapid political and economic development in Kazakhstan,the economic and trade cooperation between Kazakhstan and China has been strengthened,which has further promoted the implementation of Kazakhstan's development strategy.Kazakhstan and China complement each other in terms of resources,their geography is placed on the other side,and the development of economic cooperation between the two countries is of great significance to both parties.The economic and political relations between the two countries related to Kazakhstan's political and economic conditions are in line with Kazakhstan's strategic goals and strategic priorities.It is also conducive to achieving a win-win situation for Kazakhstan and China's trade,better playing the potential of bilateral trade,and promoting common prosperity.Therefore,develop economic cooperation between Kazakhstan and China,especially in the fields of energy,transportation and investment.Because there are many uncertainties in the bilateral trade and investment between China and Kazakhstan,the research in this paper must be conducted comprehensively and scientifically from various angles to carry out research and analysis.Under the current world economic background,the bilateral trade and investment environment is constantly changing,which has a certain impact on the economic cooperation between the two sides.Research innovation and deficiencies.Possible innovations.This article starts with the analysis of the impact of China's direct investment on the economy of Kazakhstan and the development of trade cooperation between the two countries,and collects relevant macro data to analyze the trade and investment environment of the two countries in a deeper level.This finds the unfavorable factors and problems existing in the trade and investment of the two countries.Finally,based on the results of the analysis,it proposes to optimize the Sino-Kazakh bilateral trade and investment environment from different areas of development and the impact of China's direct investment on the economy of Kazakhstan.Possible Insufficient: Because there are certain differences in the statistical data concerning the bilateral trade and investment between China and Kazakhstan in the Statistical Yearbook of China and Kazakhstan,there may be slight errors in the data analysis.At the same time,it is limited to my English's comprehensive ability to use it.There is something wrong with the article,so please correct me!Research methods.In order to describe specifically the introduction of direct investment in China in various fields,DEA data enveloping method and direct investment will be used to evaluate the efficiency of foreign businesses in various fields in Kazakhstan.Using the VAR model impulse response function method,foreign direct investment will create trade creation for Kazakhstan economy.The dynamic analysis of the effects combines empirical analysis and normative analysis.Through analysis,we find that the economic complementarities of China and Kazakhstan and their respective industrial advantages have become the benchmarks for industrial selection.Economic development and growth are the most important concentrations for each country out of poverty and provide an upscale living standard and economic development.We can recognize the economic development through gross domestic product(GDP),which is used to measure the country's overall economic activity.GDP produces all completed products and services of monetary value at the border of a country during a certain period of time usually counts tens of kilograms.The empirical results show that the overall model is significant,confirming Kazakhstan's economic growth and foreign direct investment(FDI)inflows.We only have collective consumption,investment,government spending,and net exports.One of the most important determinants is foreign direct investment in gross national product.Therefore,the relationship between GDP and FDI are prevalent research economic studies.Empirical analysis method.Considering the availability and authenticity of the data,the period of time,to be selected for the analysis was 1993.The data on China's direct investment in Kazakhstan was derived from the website of the Economic and Commercial Counselor's Office of the Chinese Embassy in Kazakhstan.The data on China-Kazakhstan import and export volume comes from China Customs.General Administration of the People's Republic of China(to reduce the impact of "gray customs" and other factors on the authenticity of data).Including foreign direct investment(China's direct investment flows to Kazakhstan),IM(China's imports from Kazakhstan),EX(China's exports to Kazakhstan).Considering China's economic size and the impact of changes in the real effective exchange rate of the renminbi,China's foreign direct investment and import and export,the model introduces China's gross domestic product(GDP)and RMB real effective exchange rate(REER).The data comes from the Chinese state.Statistics Bureau and China Economic Net database.In general,China's direct investment in Kazakhstan will have a creative effect on China's imports from Kazakhstan;China's direct investment in Kazakhstan will have a certain substitution effect on China's exports to Kazakhstan.The value and the real effective exchange rate of RMB are combined with China's direct investment in Kazakhstan.From the perspective of the stationarity test,co-integration relationship and error correction model of each variable,the changes in China's trade with Kazakhstan are analyzed.The empirical analysis shows that in the long term,China's direct investment in Kazakhstan has a clear creative effect on China's imports from Kazakhstan: When China's direct investment in Kazakhstan increases by 1%,China's imports from Kazakhstan will increase accordingly 0,854%.In terms of economic development,Kazakhstan is undoubtedly the most economically strong among Central Asian countries.In Turkmenistan,the economy stopped its recession in 1996.Since entering the 21 st century,especially since 2004,the economy has maintained high-speed growth.The gross domestic product(GDP)has exceeded 20% year-on-year,and the growth rate is among the highest in the world.China's direct investment in Kazakhstan has a negative impact on China's exports to Kazakhstan,but this substitution effect is weak.China not only needs to expand the scale of investment in the service sector in Central Asia,but also invests directly in the areas of Central Asian finance,information services,technology research and development,creative design,professional tourism services,education and training,and modern logistics to optimize the industry.Structure,realize greater economic and social benefits,and promote long-term,diversified and closer cooperation between the two parties.In the region,the high-end service market has great potential.Increasing China's investment in service industries in Central Asia can enhance China's service industry's competitiveness in the international market.The high-end service industry plays a greater role in cultural exchanges.Through highend service industries,social benefits can be more effectively increased.The high-end service industry has a large growth potential and high added value.China not only needs to expand the scale of investment in the service sector in Central Asia,but also invests directly in the areas of Central Asian finance,information services,technology research and development,creative design,professional tourism services,education and training,and modern logistics to optimize the industry.Structure,realize greater economic and social benefits,and promote long-term,diversified and closer cooperation between the two parties.Investment barriers.Kazakhstan has a wealth of energy resources.China has strong demand for energy in the process of rapid economic development.China's direct investment in Kazakhstan is mainly invested in the energy sector to obtain energy from Kazakhstan.This will not only greatly promote the growth of China's imports from Kazakhstan,but it will also stimulate the export of China's production equipment,technology and labor services.In addition,with the rapid economic development of Kazakhstan and the expansion of market potential,China's direct investment in Kazakhstan is also mainly to open up new markets in Kazakhstan,which will promote the growth of China's export trade,and will not have one export trade.Substitution effect.However,from the perspective of China's direct investment in Kazakhstan and the structure of China's export commodities,the correlation between the two is not strong.The trade between the two countries is basically in its infancy and its trade creation effect is not obvious.At the same time,in the direct investment in Kazakhstan's manufacturing industry,China often has a comparative advantage,and Kazakhstan is at a relatively disadvantageous position,which will lead to the reduction of Kazakhstan's imports of manufactured products from China.Due to geographical proximity and complementarity of factor endowments,China has become one of the most important trading partner countries in Central Asia.The important explanation for this study is that Kazakhstan has been positively affected by foreign direct investment and needs to continue to invest to stimulate further growth in GDP.This means that foreign direct investment will become an important factor in the economic growth of Kazakhstan in the future.Investment through foreign direct investment can directly and indirectly create jobs(services),stimulate technological progress,and promote economic development.It also involves participation in management,joint ventures,and transfer of experience.When China invests in Kazakhstan,it mainly faces competition from Russia and the United States.From the Russian perspective,because of historical reasons,Central Asian countries have always been regarded as backyards,regardless of political security issues or economic development.On the other hand,Russia's influence on Central Asian countries cannot be ignored.China's investment in Kazakhstan's energy sources will cause Russia's sensitive reaction.In recent years,Russia has been strengthening its investment in Central Asian countries and strengthening its influence on Central Asia,which invested the most in Kazakhstan.From the fourth quarter of 2014,Russia's investment in Kazakhstan began to overtake China.In the fourth quarter of 2014,the investment flow was 442 million U.S.dollars and China was only 291 million U.S.dollars.In the previous years,China was in the Investment flows have always been at the forefront.In the first half of 2015,Russia even reached 576 million U.S.dollars,while China was only 242 million U.S.dollars,and its investment flow was more than twice that of China.From the US perspective,after the disintegration of the Soviet Union,the U.S.The strategic direction of the Asian region is very clear.The U.S.investment in Central Asia is mainly directed toward Kazakhstan.On the one hand,it can compete for special resources.On the other hand,it can impose siege tactics on China and Russia to curb the rapid rise of China and Russia.From the above,U.S.investment flows in both 2014 and the first half of 2015 were higher than those in China and Russia,at 4.124 billion U.S.dollars and 1.113 billion U.S.dollars respectively.In 2014,it was more than double that of China.In the first half of 2015,it was nearly five times that of China.The new phase of bilateral relations and objectives of the institutional reform program.First of all,through theoretical and empirical analysis,China's view of Kazakhstan as a neo-colonialism is not credible and removes barriers to China's investment in Kazakhstan.Secondly,to study the effects of foreign direct investment between China and Kazakhstan and provide policy recommendations for optimizing China's direct investment in Kazakhstan,and to provide an exemplary role in strengthening the interconnection between China and other countries in Central Asia.Kazakhstan has abundant mineral oil and gas resources.China imports oil and natural gas to promote domestic economic development.The amount of imported strategic resources will lead to economic growth.Security issues,such as the price being controlled by the international market and exporting countries,have led to economic development being constrained by other countries and international organizations.The major investment projects of Chinese companies are related to oil and natural gas(CNPC).According to the recent agreement between the two countries,China will substantially expand its investment sector structure in the near future and not only invest in the fuel sector.The new phase of bilateral relations began in September 2013,and President Xi Jinping visited Central Asian countries.In accordance with his new concept of the ?One Belt and One Road?,President Xi Jinping initiated an initiative to build the ?Silk Road? economic belt.The "Silk Road" economic belt is a continuation of the "Western China-Western Europe" plan.The new economic belt connects Russia and Europe through Russia.Central Asian countries such as Kazakhstan are headed for Europe.The "Silk Road" through the Caspian Sea to Azerbaijan,Georgia and Turkey,not Europe,has promoted trade balance with Western Europe.Through this region,Chinese goods can be twice as fast as European customers on the sea.Judging from Kazakhstan's economic development level and resource endowment,the main driving force for China's direct investment in Kazakhstan is mainly to seek resources and markets.Foreign direct investment can develop and utilize the resources of the host country and obtain a stable purchase channel,so that the investing country can obtain sufficient resources to promote its own economic development.China's mining investment in Kazakhstan can obtain a large amount of natural resources at a relatively low price,develop its own advantageous industries through rational allocation of resources,and promote the joint economic progress of both parties.At the same time,the Kazakh state also needs foreign capital to drive its own economic development.This is a mutually beneficial economic cooperation.In recent years,investment and trade between China and Kazakhstan have achieved rapid and steady growth,but factors that are not conducive to the development of bilateral investment in the middle cannot be ignored.Based on China-Kazakhstan trade research,Kazakhstan's investment environment will be studied and in-depth analysis of investment priorities may be at risk so that Chinese companies have a more complete understanding of Kazakhstan's investment environment.The growth of Kazakhstan depends on investment,increasing assets and infrastructure.China's direct investment in an economy shows that there is a good investment trend that ultimately leads to an increase in GDP and growth,because we found in the study that the growth trend of Chinese investment also increased the country's GDP.According to UNCTAD(Investment Report,2007,p.14),investors are one of the most attractive countries in the developing world.As our research has proven,the impact of China's direct investment on Kazakhstan's economic growth has only shown positive sighs.In the future,it is necessary to further increase direct investment in Kazakhstan,promote the diversification of China's investment field,and promote the optimization of China-Kazakhstan's import and export product mix.According to UNCTAD(Investment Report,2007,p.14),investors are one of the most attractive countries in the developing world.When making international investments,it is important to note that domestic investors need to provide adequate quality indicators.All of these common problems are limited,so they are of considerable importance on all issues: Definition and product selection;The importance of innovation and new technological development in practice;Long-term improved technology,especially in the field of technology.The priority issues will enable us to have more experience.For a long time,we have been committed to developing better products.Kazakhstan continues to maintain political stability;the government plans to strengthen national and market institutions.The authorities intend to continue their efforts to increase the transparency,accountability and legitimacy of state institutions.The objectives of the institutional reform programs are to: 1)improve the provision of public services through the development of skills and the application of elite domination principles in public services;2)improve the business environment through simplification of regulations;3)protect the contract through the protection of property rights,and to improve the judicial and Law enforcement system to enhance the role of the rule of law;4)based on multiculturalism,trilingualism(Kazakh,Russian,English),with social mobility as the guarantee,to promote the development of Kazakhstan's national identity.Due to declining external demand,internal imbalances and unfavorable changes in terms of trade,production growth slowed in 2014.In 2010-2013,real GDP growth averaged 6.5% due to high oil prices.However,due to the declining domestic demand caused by the devaluation of the Thai baht in February 2014,the demand for metal and metal products in Kazakhstan declined in China and Russia,and the decrease in demand in the second half of 2014 decreased from 6% in 2013 to 4.3% in 2014.The price of oil fell sharply in the second half of the year.Departmental and geographical mobility helps maintain positive trends in the labor market and poverty reduction.Under the background of economic globalization,continue to vigorously attract foreign direct investment and constantly optimize the structure of foreign capital.Efforts to upgrade the use of foreign capital and further innovate the use of foreign investment will be key steps and important content of Kazakhstan's economic development and national modernization goals in the new century.Foreign direct investment in the production and distribution of agriculture,extractive industry,manufacturing,electricity natural gas and water,construction employment,trade repairs and household goods production,hotel and hotel industry,transportation and communications,financial and financial activities,etc.The average wage has a different degree of influence.The reasons for this difference related to the industry characteristics of different industries,the country's national conditions and strategic choices.Since the beginning of the 21 st century,with the recovery of the Kazakh economy and gradual progress toward stability,the Kazakh government has implemented the policy of ?import substitution? to support the national industry,while strengthening macro-control,actively attracting foreign investment,and focusing on the development of the oil and gas industry and the mining industry.The development of SMEs,the implementation of a series of free-floating exchange rates and other measures.Agricultural,manufacturing,electricity,natural gas and water production and distribution,construction,trade repair and household goods production,hotel and hotel industry,transportation and communications,and financial and financial activities have gradually gained attention.FDI has begun to have varying degrees of the growth of different industries has determined the degree of influence of FDI introduction on the quantity and quality of employment.Conclusion:(1)China and Kazakhstan have already established a good basis for cooperation from basic direct investment to political,economic and humanities fields.Both sides should make full use of this,especially to strengthen and develop the level of trade and investment liberalization and facilitation.The growth of Kazakhstan depends on investment,increasing assets and infrastructure.China's direct investment in an economy shows that there is a very good investment trend,which ultimately leads to an increase in GDP and growth.Because in my research,I discovered that not only foreign direct investment but also the growth trend of Chinese investment has increased.The country's gross domestic product.Foreign direct investment brings foreign technical and managerial skills,which adopted by the host countries of other sectors.The following sections broadly explain the economic and foreign direct investment situation in each country.Among Central and Eastern Europe and the Commonwealth of Independent States,Kazakhstan is one of the most open country to foreign capital.All sectors of the country's economy are open to foreign investment,allowing foreign investors to participate in privatization.Foreign investors are involved in oil and gas,steel,mining,transportation and so on.Kazakhstan is the largest economy in Central Asia.Kazakhstan is more than double the combined number of the other four Caribbean countries.Its largest neighbors and trading partners are Russia and China.(2)The government of Kazakhstan realizes that the role of foreign direct investment in this process is very important if we want to change the current weak international competitiveness of domestic enterprises in Kazakhstan.In recent years,Kazakhstan has been the most attractive country for foreign investment in Central Asia.There are also more and more investment countries,but both in terms of policy and preference biased toward developed countries such as Europe and the United States,which has a blow to the future polarity of mutual investment between developing countries like China and Kazakhstan.Therefore,the government of Kazakhstan must continue to reflect on and analyze the economic development process in the future,correct attitudes and concepts,and develop neighboring countries' investment and economic relations.(3)This paper adopts a combination of theoretical analysis and empirical analysis.Finally,it proposes that China should follow direct investments in Kazakhstan,explore market orientation,seek resources,and upgrade the industrial structure of Kazakhstan. |
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