Journal of International Business and Economics

The Relationship between FDI, Diversification and Economic Growth in Natural Resource Oriented Countries: Case of Kazakhstan
Keun Jung Lee, Bekzhan Fariza, Zhuldyz Sharipova

Abstract
This paper investigates the relationship between foreign direct investment (FDI) and economic growth as a factor of diversification of economy of Kazakhstan. To analysis economic structural change as transition economyinnatural resource oriented countries, we examine both the natural recourseand manufacturing sectors affect to economic developmentfrom 1994 to 2013. Modified model from basic multiple regression model included Gross Domestic Product, Human Development Index, Gross Capital Formation and Foreign Direct Investment. We found that there is significant relationship among GDP, FDI and Gross Capital Formation. But there is no dependency between Human Development Index and GDP.However, FDI into manufacturing and commodity sectors show different results that has less effect on GDP.

Full Text: PDF     DOI: 10.15640/jibe.v3n2a4