Analysis of the Impact of Foreign Direct Investments on Economic Development (Focus on Kazakhstan)

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School of Business | Bachelor's thesis
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Degree programme
(Mikkeli) Bachelor’s Program in International Business
Objectives: The primary objective of this research is to examine the influence of foreign direct investment on the economic development of Kazakhstan. The thesis will show the economic transformation of Kazakhstan from its independence up to 2022, as well as the forecast of the country's GDP and FDI until 2050. Moreover, the review of existing studies analyzed performs a correlation and regression analysis to investigate the impact of foreign direct investment on various macroeconomic indicators. Consequently, this thesis aims to contribute to the existing literature on the subject and provide a better understanding of the connection between FDI and economic development. Summary: The thesis used secondary data to review existing analyses of the impact of FDI on economic development in Kazakhstan through 2020 using various macroeconomic indices such as exports, foreign trade, and gross domestic product (GDP). In addition, the thesis will show how the levels of foreign direct investment and GDP in Kazakhstan have changed over time. Conclusion: In general, quantitative evidence shows that foreign direct investment does not significantly affect the country's economic development, as various studies show different results that either have an insignificant effect or are too small to state that this could be considered a positive or negative result. And based on the reviewed analyses, it can be assumed that the lack of technological achievements in the country may be one of the reasons for the insignificance of foreign direct investment.
Thesis advisor
Rannikko, Heikki
foreign direct investment, economic growth, economic development, gross domestic product, correlation, regression
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