Abstract
The article examines the impact of FDI inflows on the economic growth of the host country, using the Kazakhstan economy as an example. The authors attempted to assess the impact of FDI using a multiple regression model. As a measure of economic growth, Kazakhstan’s GDP data for the period 2000-2017 was used. The simulation results didn’t reveal the negative impact of FDI on economic growth, but the analysis revealed that the presence of a positive relationship is not essential for assessing the growth of the national economy.
Highlights
Economic growth and development depend essentially on the country's ability to invest and use its resources efficiently
In the USA, FDI amounted to 354 billion US dollars (1st place in the world) and GDP amounted to 20 513 billion US dollars (1st place in the world)
Authors study the impact of FDI on the economic growth of Kazakhstan using annual data for the period from 2000 to 2017
Summary
Economic growth and development depend essentially on the country's ability to invest and use its resources efficiently. Investments in Kazakhstan are financed from various sources, most are still funded by domestic savings. Access to foreign sources of capital plays a huge role for the economy, in Kazakhstan, and in developing and developed countries. It should be understood that investments are a sensitive component of GDP and fluctuate most strongly depending on the phase of the business cycle of the economy. Samuelson (1948), states that with favorable phases of the economic cycle, the growth of real GDP leads to an increase in real investment, which, in turn, leads to a reciprocal growth in gross output [1]. How much the country's gross income will change in response to changes in investment has been a matter of study for many years
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