International finance inflows and economic growth in the Independent Republic of Kazakhstan

Abstract

The major objective of the study was to examine the link between Kazakh economic reform from 1993–1994 to 2000–2002 and high GDP rate of 12.57% in 2011. Economic statistics comparative method was used to analyse the data obtained. The results revealed that the high FDI has been contributing more to the economic growth of 12.57%. On the contrary the domestic investment has played the last role in the increasing growth. The GDP per inhabitant increased from US $1,000 to US $13,000. The indicator of democracy (3.3%), 59th rank level development, of good condition for investment, immense natural resources, financing Islamism capital, private foreign stock market are main reasons to attract investors. Kazakhstan has to be active in world organisation, to improve perceptible gains of domestic investment in agro-business and small industry that are still weak, to diversify financing and economic relations outside China, Russia, USA and Arabian countries. Kazakhstan has to participate in share holding of FDI.