The Impact Of Chinese Direct Investment In Kazakhstan On Bilateral Trade

Since China put forward the Belt and Road Initiative in 2013,the scale of China’s foreign direct investment has gradually expanded,and the scale of China’s investment in countries along the Belt and Road is also increasing.Kazakhstan,as the largest country in Central Asia,plays an important role in both politics and economy.China and Kazakhstan have great advantages in geographical location and resource cooperation.Since the establishment of diplomatic ties 30 years ago,China and Kazakhstan have made significant progress in cooperation in various fields and achieved a series of achievements.In economic and trade cooperation,the scale of China’s direct investment and bilateral trade in Kazakhstan has reached a new high,and the economic cooperation between China and Kazakhstan has entered a new stage.Under the new situation of deepening China-Kazakhstan relations,the investment and trade between the two countries are also faced with complicated problems.Therefore,this paper studies the impact of China’s direct investment in Kazakhstan on bilateral trade,hoping to provide some valuable suggestions for the future economic and trade cooperation between China and Kazakhstan through this study.This paper uses the investment and trade data of China and Kazakhstan to explain the current situation of China’s direct investment and trade in Kazakhstan,and analyzes its characteristics,and then analyzes the action mechanism of direct investment in Kazakhstan on import and export trade.Finally,the model is used for empirical analysis.The data of China-Kazakhstan direct investment and trade from1993 to 2021 are used for regression analysis by econometrics software.The conclusion is that in terms of total trade volume,there is a positive correlation between China’s direct investment in Kazakhstan and bilateral trade between China and Kazakhstan.That is,China’s direct investment in Kazakhstan will have complementary effects on China’s import and export trade.In terms of trade structure,China’s direct investment in Kazakhstan can promote the export of capital-technology-intensive and labor-intensive products from China to Kazakhstan,and promote China’s import of resource-intensive products from Kazakhstan.In general,direct investment can promote the optimization of trade structure between China and Kazakhstan.Based on the research and empirical analysis of the current situation of Sino-Kazakh investment and trade,this paper puts forward countermeasures and suggestions for the existing problems in the economic and trade cooperation between China and Kazakhstan according to the conclusions,so as to expand the scale of China’s direct investment in Kazakhstan,optimize the bilateral trade structure and provide references for the future economic and trade cooperation between China and Kazakhstan.