The Effect of Foreign Direct Investments, Trade Openness and Employment on Growth: The Case of Kazakhstan (1992-2022)

Hilal Paksoy; Mehmet Alagöz

Article Details

The Effect of Foreign Direct Investments, Trade Openness and Employment on Growth: The Case of Kazakhstan (1992-2022)

Authors:

Hilal Paksoy | Mehmet Alagöz

Publisher:

Necmettin Erbakan University

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Necmettin Erbakan Üniversitesi Siyasal Bilgiler Fakültesi Dergisi Vol.6 Issue 1, pp.160-175

Document Type:

Article

Publication Date:

6/2024

Document Language:

Turkish

Document ID (Org No.):

2001321045

pISSN:

2667-8063

Keywords:

Abstract:

 In the globalizing world, openness and foreign direct investments are considered key variables of economic growth. After the pandemic, large amounts of capital flows are experienced to developing economies as an important factor of the changing global financial architecture. This situation causes the importance of foreign direct investments to increase day by day. According to World Bank data, foreign direct investments have been increasing since 1995. Direct foreign investments in Kazakhstan, which was 100 million dollars in 1992, reached approximately 5 billion dollars in 2022. This study aims to provide a reference material for researchers by examining the effects of foreign direct investments, trade openness and employment on Kazakhstans gross domestic product for the period 1992-2022 using Granger causality tests. As a result of the study, it was determined that while there was a bilateral causality relationship between gross domestic product GDP and foreign direct investments FDI, there was no mutual influencing capacity between other variables. While there is a unilateral causal relationship from employment to gross domestic product and from foreign direct investments to trade openness TA, no relationship was found between trade openness and gross domestic product.

 In the globalizing world, openness and foreign direct investments are considered key variables of economic growth. After the pandemic, large amounts of capital flows are experienced to developing economies as an important factor of the changing global financial architecture. This situation causes the importance of foreign direct investments to increase day by day. According to World Bank data, foreign direct investments have been increasing since 1995. Direct foreign investments in Kazakhstan, which was 100 million dollars in 1992, reached approximately 5 billion dollars in 2022. This study aims to provide a reference material for researchers by examining the effects of foreign direct investments, trade openness and employment on Kazakhstans gross domestic product for the period 1992-2022 using Granger causality tests. As a result of the study, it was determined that while there was a bilateral causality relationship between gross domestic product GDP and foreign direct investments FDI, there was no mutual influencing capacity between other variables. While there is a unilateral causal relationship from employment to gross domestic product and from foreign direct investments to trade openness TA, no relationship was found between trade openness and gross domestic product.

 In the globalizing world, openness and foreign direct investments are considered key variables of economic growth. After the pandemic, large amounts of capital flows are experienced to developing economies as an important factor of the changing global financial architecture. This situation causes the importance of foreign direct investments to increase day by day. According to World Bank data, foreign direct investments have been increasing since 1995. Direct foreign investments in Kazakhstan, which was 100 million dollars in 1992, reached approximately 5 billion dollars in 2022. This study aims to provide a reference material for researchers by examining the effects of foreign direct investments, trade openness and employment on Kazakhstans gross domestic product for the period 1992-2022 using Granger causality tests. As a result of the study, it was determined that while there was a bilateral causality relationship between gross domestic product GDP and foreign direct investments FDI, there was no mutual influencing capacity between other variables. While there is a unilateral causal relationship from employment to gross domestic product and from foreign direct investments to trade openness TA, no relationship was found between trade openness and gross domestic product.

 Küreselleşen dünyada dışa açıklık ve doğrudan yabancı yatırımlar ekonomik büyümenin anahtar değişkenleri olarak kabul edilmektedir. Pandemi sonrasında gelişmekte olan ekonomilere, değişen küresel finansal mimarinin önemli bir faktörü olarak ön plana çıkan büyük miktarlarda sermaye akışları yaşanıyor. Bu durum doğrudan yabancı yatırımların öneminin her geçen gün daha da artmasına neden olmaktadır. World Bank verilerine göre doğrudan yabancı yatırımlar, 1995ten günümüze artış göstermektedir. Kazakistanda 1992 yılında 100 milyon dolar olan doğrudan yabancı yatırımlar 2022 yılında yaklaşık 5 milyar dolara ulaşmıştır. Bu çalışma, Granger nedensellik testleri kullanılarak doğrudan yabancı yatırımlar, ticari açıklık ve istihdamın Kazakistanın 1992-2022 dönemi için gayri safi yurtiçi hasılasına etkisini inceleyerek araştırmacılara bir referans materyali sunmayı amaçlamaktadır. Çalışmanın sonucunda gayri safi yurtiçi hasıla GDP ile doğrudan yabancı yatırımlar DYY arasında çift taraflı bir nedensellik ilişkisi bulunurken diğer değişkenler arasında karşılıklı bir etkileme kapasitesinin olmadığı tespit edilmiştir. İstihdamdan gayri safi yurt içi hasılaya ve doğrudan yabancı yatırımlardan ticari açıklığa TA doğru tek taraflı bir nedensellik ilişkisi mevcutken ticari açıklık ile gayri safi yurt içi hasıla arasında ise herhangi bir ilişki bulunamamıştır.

Article Details

The Effect of Foreign Direct Investments, Trade Openness and Employment on Growth: The Case of Kazakhstan (1992-2022)

Authors:

Hilal Paksoy | Mehmet Alagöz

Publisher:

Necmettin Erbakan University

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Necmettin Erbakan Üniversitesi Siyasal Bilgiler Fakültesi Dergisi Vol.6 Issue 1, pp.160-175

Document Type:

Article

Publication Date:

6/2024

Document Language:

Turkish

Document ID (Org No.):

2001321045

pISSN:

2667-8063

Gross Domestic Product

Trade Openness

Foreign Direct Investment

Employment

Johansen Cointegration Test.Gayri Safi Yurtiçi Hasıla,

Ticari Açıklık,

Doğrudan Yabancı Yatırım,

İstihdam,

Johansen Eşbütünleşme Testi

Issues

Article Details

Authors: Hilal Paksoy | Mehmet Alagöz

Publisher: Necmettin Erbakan University

Main Topics: Kalkınma Ekonomisi - Makro

Journal: Necmettin Erbakan Üniversitesi Siyasal Bilgiler Fakültesi Dergisi Vol.6 Issue 1, pp.160-175

Document Type: Article

Publication Date: 6/2024

Document Language: Turkish

Document ID (Org No.): 2001321045

pISSN: 2667-8063

Issues

Authors:

Hilal Paksoy | Mehmet Alagöz

Publisher:

Necmettin Erbakan University

Main Topics:

Kalkınma Ekonomisi - Makro

Journal:

Necmettin Erbakan Üniversitesi Siyasal Bilgiler Fakültesi Dergisi Vol.6 Issue 1, pp.160-175

Document Type:

Article

Publication Date:

6/2024

Document Language:

Turkish

Document ID (Org No.):

2001321045

pISSN:

2667-8063