Impact of FDI on Kazakhstan’s Economic Growth

Abstract

The article examines the influence of foreign direct investment (FDI) on the economic growth of Kazakhstan from 2020 to 2023, with a particular focus on the interaction between local financial markets and global economic trends. Despite geopolitical and economic challenges, Kazakhstan has demonstrated resilience and adaptability, achieving GDP growth rates of 3.1% in 2022 and 4.9% in the first quarter of 2023. The study analyzes the effect of FDI in various sectors, leveraging data on over 300 projects worth more than $10 billion USD facilitated by partnerships such as with the European Bank for Reconstruction and Development (EBRD). Additionally, the paper explores the impact of strategic reforms under the "New Kazakhstan" initiative, which include enhancing legislative frameworks, promoting fair competition, protecting private property, and reducing state influence in the economy. This paper uses a comparative analysis approach, contrasting Kazakhstan's experience with other Central Asian countries, to provide a broader understanding of regional investment dynamics. The research further discusses the role of international cooperation and policy frameworks in attracting FDI, particularly focusing on Kazakhstan's efforts to improve its investment climate through legislative stability and economic incentives