Abstract
Based on analytical reviews, volatility will continue to persist in commodity markets, especially in oil markets, in 2019. Oil prices are projected to rise slightly in the near future and will average about $70.0 per barrel, compared with $71.0 in 2018. At the same time, the risks to oil and other commodity prices are mainly reduced, given the slowdown in demand growth and increased supply. Despite volatility, prices are expected to be slightly different from their current indicators by the end of 2019. The above indicates the relevance of the chosen topic, since oil for Kazakhstan is a natural resource that has an impact on the state economy as a whole. Oil does and will predetermine the further development of the national economy. In accordance with the adopted strategy for the development of manufacturing industries, the oil and gas sector should become the basis of the country's economic growth based on its deep processing and manufacturing of high value-added products. This article provides an overview of theoretical approaches to assessing the role of natural resources in the development of countries, as well as the stages of development of world oil markets. An analysis is conducted of the impact of various factors on the development of world oil markets and their volatile characteristics. The development of the Kazakhstani oil market is examined and evaluated.Keywords: Oil, Oil Products, Dutch Disease, Raw Materials Curse, Economic Development, National Economy, Economic Growth, Manufacturing Industry.JEL Classifications: L71, N55, 013, P28DOI: https://doi.org/10.32479/ijeep.9964
Highlights
The development of the oil and oil products market, based on the availability of natural resources, has a significant impact on state economic development
Researchers’ opinions on economic growth based on the raw material model rely on the fact that economic growth in backward regions usually begins with increased entrepreneurial activity in the development of natural resources, and the capital of the raw material sector is reinvested in the development of local infrastructure, services and manufacturing industries (Corden and Neary, 1982)
From the above it follows that the influence of natural resources on the development of the national economy and, in our case, of the oil and gas sector, is complex and multifaceted
Summary
The development of the oil and oil products market, based on the availability of natural resources, has a significant impact on state economic development. In this regard, a significant amount of research has been devoted to this subject. In practice, the raw material model is no benefit at all; this is what leads to a negative process in economic development called the “Dutch disease,” or “the curse of natural resources.”. By attaching great importance to the raw material sector and getting a “low” currency, the state limits itself to sustainable economic development, where manufacturing industries are gradually degrading, i.e., where “direct deindustrialization” takes place.
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