...Welcome to the third edition of EY’s Kazakhstan attractiveness survey. In this new edition, we continue to analyze the latest foreign direct investment (FDI) trends in Kazakhstan and explore what investors think about the country’s investment climate, as well as its potential. This year, the country’s macroeconomic, social and political stability have taken over as the key driver of investment. This represents a shift from our previous two surveys, which showed that the country’s low labor costs and productivity gains on offer were its most appealing features. This change can be attributed in part to the ongoing instability of the global economy. It is this uncertainty that has led investors to look to countries such as Kazakhstan as a safer place to grow. The reality of foreign investment in Kazakhstan confirms this perception. While global FDI inflows declined by 18% between 2011 and 2012, Kazakhstan remained a stable destination for investors, receiving US$14b in FDI inflows. Investors continue to perceive Kazakhstan as a treasure trove of natural resources, while they also value some knowledge-based, high-value-add sectors that hold considerable promise. The Kazakhstan Government remains committed to reducing the country's dependence on extractive industries and developing a more balanced, knowledge-driven and investor-friendly economy. It continues to improve the competitiveness and productivity of priority sectors, such as agriculture and agro-processing; construction and...
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...International Business Project Economics of Kazakhstan: For most of the country’s history, nomadic people have inhabited Kazakhstan, but until recently the country has been strategically building its economy. The country is rich in oil and has been improving its drilling production after gaining independence in 1991. Oil production is estimated to reach about 2 million barrels per day by 2020. An estimated 4 billion tons of crude oil is recoverable and Kazakhstan also contains an estimated 15% of the worlds’ supply of Uranium and is currently the largest producer of the commodity. These two factors play a significant part in the country’s overall GDP and are its largest exports. By 2015, Kazakhstan is expected to be the tenth largest supplier of oil in the world. The country’s GDP is valued at 186.4 billion with a 7.5% growth rate, oil counting for 24% of the GDP and 65% of overall exports. Kazakhstan received a rating of 68 in the world for economic freedom following Portugal at 67. The economic freedom index ranks countries based on 10 different categories involving economic freedom: Property Rights, Freedom From Corruption, Business Freedom, Labor Freedom, Monetary Freedom, Government Spending, Fiscal Freedom, Trade Freedom, Investment Freedom, and Financial Freedom. Since last year they have experienced decreases in half of these categories, which is why their rating is slightly lower than last year. Because oil prices are continually rising, Kazakhstan’s...
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...Position of Kazakhstan in International Trade and Business Student’s name Institutional affiliation Analysis of macroeconomic situation in Kazakhstan 1 Macroeconomic trends Kazakhstan is one of the richest economies in Asia. It is also the second largest of the former Soviet Republics after Russia. The economy has enormous fossil fuel reserves and plentiful supplies of minerals (Francis, 2011). There are different metals available in the economy including uranium, zinc, and copper. Some like uranium are exported to almost all parts of the globe. The economy was ranked 11th out 42 countries in the Asia-pacific region. The overall score of the economy is also above world and regional averages. The GDP of the economy grew from 78,014,200 in 1995 to 147,453,000 in 2005 (Aitzhanova, et al. 2014). The dollar exchange rate has been well managed through a sound monetary policy that has been adopted. The country has been faced with inflation challenges. In 2001, the inflation rate was very high because of strong foreign-currency inflows (Ibrayev, Badjanov & Li, 2014). However, the economy survived the pressure, and surprisingly it is one of the first former soviet republic that has repaid all debts to the international monetary fund in 2000 (Datkhayev, 2013). The country paid $400 million ahead of the schedule. From then, the economy has been able to limit its foreign debt within manageable levels. [pic] Figure 1: Kazakhstan GDP in billion USD retrieved from...
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...type-written assignment Student: Aliaskar Batyrbek Student ID: NE/WICKL/UWIC/BABS/1011/0117 Assignment Topic: An investigation study of development of oil and gas industry in Kazakhstan Table of Contents 2 Introduction 4 2.1 Country Profile 4 2.2 History of industry 4 3 Research Objectives 5 4 Literature Review 6 4.1 Geographic Factor 6 4.1.1 Major Oilfields 8 4.1.2 Export Operating Pipelines 9 4.2 Government Policies 11 4.3 Financial Factor and R&D Factor 12 4.4 Market Prospects 14 4.4.1 Market players 14 4.4.2 Production 15 4.4.3 Consumption 16 5 Research Methodology 18 6 Time Scale / Gantt Chart 19 7 References 20 Figure 1 4 Figure 2 (KMG, 2012) 5 Figure 3 (BP, 2012) 5 Figure 4 (European Dialogue, 2012) 6 Figure 5 (BP, 2012) 6 Figure 6 (CIA, 2012) 8 Figure 7 (Centre for Global Energy Studies, 2012) 9 Figure 8 (Centre for Global Energy Studies, 2012) 9 Figure 9 (The Agency of Statistics of the Republic of Kazakhstan, 2012) 10 Figure 10 (S. Arkhipov., W. Brennan., G. Elfond., N. Lv., A. Omarova., 2010) 12 Figure 11 (BP, 2012) 14 Figure 12 (BP, 2012) 14 Figure 13 (BP, 2012) 15 Figure 14 (BP, 2012) 15 Figure 15 (EIA, 2012) 15 Figure 16 17 Figure 17 18 Introduction Country Profile Kazakhstan is a country, located in Central Asia. It is the largest landlocked...
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...Xiamen University Title The Impact of Capital Account on Economic Grow Author : Yagoub Ali Elryah School of Southeast Asian Studies Faculty of International Relations Student number: 25520120254069 January, 2013 Correspondence Yagoub Ali Elryah, Xiamen University, Xiamen, Tel: 15860796370, E-mail: yagoubelryah@hotmail.com 1- Background: In the era of economic integration, most of the developing and developed countries not only open their borders for trade of goods and services, ideas, technology, information, etc. but also open capital accounts that have virtually made the world a global village1. During the 1980s and 1990s, a large amount of capital moved internationally from private investors in the whole world. It took place primarily through sale of bonds and equities and international investment by multinational corporations. Thus, globalization of finance and efficient allocation of capital stimulated growth in developing countries significantly. It is the nature of capital to move from places where it is plentiful to where it is scarce, provided there is no barrier to cross the border. Return on new investment is higher where capital is scarce. This is an incentive for people to save more (leading to enhanced capital formation) in developing countries as these countries are in general capital poor. For the same reason, foreign individuals and companies seek to invest their surplus capital in developing countries. Thus, this channel in turn, can help...
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...World Economic and Financial Sur veys Regional Economic Outlook Middle East and Central Asia 09 I N T E R N A T I O N A L M O N E T A R Y M AY F U N D W o r l d E c o n o m i c a n d F in a n c i a l S u r v e y s Regional Economic Outlook Middle East and Central Asia •••••••••••••••••••••• 09 I N T E R N A T I O N A L M O N E T A R Y F MAY U N D ©2009 International Monetary Fund Cataloging-in-Publication Data Regional economic outlook : Middle East and Central Asia. – [Washington, D.C.] : International Monetary Fund, 2009. p. ; cm. – (World economic and financial surveys, 0258-7440) ISBN 978-1-58906-842-1 “MAY09.” Includes bibliographical references. 1. Economic forecasting – Middle East. 2. Economic forecasting – Asia, Central. 3. Middle East – Economic conditions. 4. Middle East – Economic conditions – Statistics. 5. Asia, Central – Economic conditions. 6. Asia, Central – Economic conditions – Statistics. I. International Monetary Fund. II. Series: World economic and financial surveys. HC415.15.R445 2009 Please send orders to: International Monetary Fund, Publication Services 700 19th St. N.W., Washington, D.C. 20431, U.S.A. Tel.: (202) 623-7430 Fax: (202) 623-7201 E-mail: publications@imf.org Internet: www.imfbookstore.org The views expressed in this publication are those of the contributors...
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...I. GLOBALIZATION: OPPORTUNITIES AND CHALLENGES A. NEW FORCES DRIVING GLOBALIZATION any people consider globalization nothing new – societies have been interconnected for years. But globalization took different forms in the past and the contemporary conjuncture is new.1 The world has never experienced globalization at this level of intensity before or the speed at which it is transforming and integrating societies. There is no single, all-encompassing definition of globalization, notes Sen.2 Instead, it has become a broad heading for a multitude of global interactions, ranging from the expansion of cultural influences across borders to the enlargement of economic and business relations throughout the world. For the economist, globalization is essentially the emergence of a global market. For the historian, it is an epoch dominated by global capitalism. Sociologists see globalization as the celebration of diversity and the convergence of social preferences in matters of lifestyle and social values. To the political scientist, it represents the gradual erosion of State sovereignty. But disciplinespecific studies explain only a part of the phenomenon. From a multidisciplinary angle, globalization may be treated as a phenomenon, a philosophy and a process which affect human beings as profoundly as any previous event.3 Several factors have been responsible for this phenomenon. This study confines its attention to four growthenhancing facets of globalization that have been among its...
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...9 Kazakhstan Kazakhstan Energy report (Forecast closing date: August 6th 2009) Energy consumption, international comparison (m tonnes oil equivalent) Kazakhstan US Japan China Germany Source: Economist Intelligence Unit. 2004 a 60 2,354 530 1,418 346 2005 a 68 2,362 527 1,567 343 2006 a 70 2,362 b 527 b 1,718 344 2007 b 74 2,370 522 1,853 347 2008 b 78 2,338 510 1,977 347 2009 c 76 2,284 490 2,003 339 2010 c 76 2,274 492 2,094 338 2011 c 77 2,272 496 2,207 338 2012 c 77 2,275 499 2,330 341 2013 c 78 2,301 503 2,457 345 a Actual. b Economist Intelligence Unit estimates. c Economist Intelligence Unit forecasts. Overview Kazakhstan"s oil sector accounts for around 30% of GDP and more than half of the country"s export revenue. With proven reserves of 39.8bn barrels in 2008, according to BP (a UK oil conglomerate), the largest proven oil reserves base of the Caspian Sea region, it accounts for 3.2% of the world"s total oil reserves, and has a reserves-to-production ratio of 70 years. Gas output (at around 30bn cu metres annually) and consumption is currently roughly balanced, although exports are set to rise as output at the main Karachaganak field picks up. Owing to the Soviet-era structure of Kazakhstan"s gas and electricity distribution networks, which are concentrated in the northern and western regions, closest to the main sources, Kazakhstan is forced to import both resources for the southern regions. The government has become...
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...Goodbye Bank Secrecy, Goodbye Switzerland From start of 2012 to May 2013, the number of foreign owned Swiss banks has fallen from 145 to 129(though it remains the biggest centre for global offshore wealth with $ 2.2 trillion i.e. 26% of the market, which was 27% in 2012). Example:- Lloyds Banking Group, Commerzbank, etc Reasons• Recent shake up in Europe’s economy • In 2012, one-third of banks had fund outflows • One bank in 6 recorded losses Hence many banks are reviewing their geographical footprint, specially in the offshore markets. Moreover, a combination of government actions from the US & EU and the increased regulatory pressure is likely to trigger more such changes, because it will only make it a more costly affair to do business. Smaller players will be forced to close or to merge with larger banks. Switzerland will have to develop new products and services to attract foreign clients, now that banking secrecy argument has been solved in the recent. Air-Asia to focus on India’s under-utilised airports Budget airline carrier Air-Asia (which will launch later this year) is looking forward to:• Add 10 aircrafts annually • Focus operations on country's under-utilised airports as a part of expansion plan • To focus on South India first before expanding operations in the rest of the country The success will depend a lot on the cost structure & the marketing, says CEO Air-Asia. They are hopeful of achieving scale through lower-priced tickets & cutting costs by offering...
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...Introduction There is a rising trend outward FDI (OFDI) from emerging market, mostly dominated by countries such as China and India (Gao, Liu, & Zhou, 2013). China’s outward FDI increased from $27 billion in the year 2000 to $230 billion by the end of the year 2009. Since the late 1990s, India’s OFDI has increased to $77 billion by the end of the year 2009 (Buckley, Forsans, & Munjal, 2012). Porter’s national competitive advantage emphasizes productivity growth as the focus of success in international trade. John Dunning went on to explain in detail the drivers of OFDI using his eclectic theory of ownership, location, and internalization advantage including four major motives: market-seeking, resource-seeking, efficiency-seeking and strategic asset seeking (Gao, Liu, & Zhou, 2013). Market seeking Firms aim to capitalise on ownership of well-established brands, marketing skills and overseas distribution networks by seeking large foreign markets (Buckley, Forsans, & Munjal, 2012). Since China’s WTO accession, because of over-capacity in some sectors, Chinese manufacturers have started to invest in developed countries as well as in developing countries. Shanghai Automobile Industry Corp. bought over 50 percent stake in Korean Ssangyong Motor Co. in 2004, and TCL acquired the colour TV manufacturing from French Thomson in 2004 in order to expand their markets and achieve economies of scale. CDC Software, a wholly owned subsidiary of Chinese CDC Corporation, acquired...
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...3 A. 1. FOREIGN DIRECT INVESTMENT TRENDS AND DEVELOPMENTS RECENT TRENDS IN FOREIGN DIRECT INVESTMENT INFLOWS AND OUTFLOWS Global trends 15 Following what seemed to be a swift recovery from the global financial crisis in 2010-2011, global foreign direct investment (FDI) inflows have again taken a downward turn. As the world economic recovery continues to be uncertain and fragile, global FDI inflows have declined by 18%, from $1.65 trillion in 2011 to $1.35 trillion in 2012. Inflows decreased both in developed and developing economies.16 However, while the majority of developed countries experienced a significant reduction in their FDI inflows, by 32% on average, those to developing economies remained relatively resilient, declining by only 4% on average. More importantly, for the first time developing economies alone absorbed more FDI than developed countries, accounting for 52% of global FDI inflows (figure 3.1). Asia-Pacific Trade and Investment Report 2013 FIGURE 3.1 1400 1200 Billions of United States dollars 1000 800 600 400 200 0 2003 Foreign direct investment inflows to developed and developing economies, 2003-2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 Developed economies Developing economies Source: ESCAP calculations, based on UNCTADStat. FIGURE 3.2 2000 Billions of United States dollars 1800 1600 1400 1200 1000 800 600 400 200 0 2003 2004 2005 2006 Foreign direct investment outflows from developed...
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...U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2013 GLOBAL VALUE CHAINS: INVESTMENT AND TRADE FOR DEVELOPMENT New York and Geneva, 2013 ii World Investment Report 2013: Global Value Chains: Investment and Trade for Development NOTE The Division on Investment and Enterprise of UNCTAD is a global centre of excellence, dealing with issues related to investment and enterprise development in the United Nations System. It builds on four decades of experience and international expertise in research and policy analysis, intergovernmental consensusbuilding, and provides technical assistance to over 150 countries. The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage of development reached by a particular country or area in the development process. The major country groupings used in this Report follow the classification of the United Nations Statistical Office. These are:...
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...U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2013 GLOBAL VALUE CHAINS: INVESTMENT AND TRADE FOR DEVELOPMENT New York and Geneva, 2013 ii World Investment Report 2013: Global Value Chains: Investment and Trade for Development NOTE The Division on Investment and Enterprise of UNCTAD is a global centre of excellence, dealing with issues related to investment and enterprise development in the United Nations System. It builds on four decades of experience and international expertise in research and policy analysis, intergovernmental consensusbuilding, and provides technical assistance to over 150 countries. The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage of development reached by a particular country or area in the development process. The major country groupings used in this Report follow the classification of the United Nations Statistical Office. These are:...
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...Introduction of Foreign Direct Investment Foreign Direct Investment (FDI) is known as the long term participation by country A into country B. It usually involves participation in management, joint-venture, transfer of technology and expertise. In other words, foreign direct investment is the cross-border corporate governance mechanism through which a company gains productive assets in another country. FDI is different from other major forms of foreign investment in that it is motivated largely by the long-term profit prospects in production activities that investor directly control (Wong, 2005). Wong also says that almost most of the developing and least developed countries worldwide equally participated in the process of direct investment activities. Over a long period of time, foreign direct investment (FDI) forms a major part of investment in most industrial and some developing countries. Besides that, he did explain that some FDI is intended to utilize local natural resources. Sometimes it is to employ relatively cheap labour, and sometimes to produce goods near to markets. Moreover, foreign direct investment can be a significant driver of development in poor nations. According to Katerina, John and Athanasios (2004), it provides an inflow of foreign capital and funds, in addition to an increase in the transfer of skills, technology, and job opportunities. Furthermore, they said it would be difficult to generate this capital through domestic savings, and even if it were...
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...U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2011 NON-EQUITY MODES OF INTERNATIONAL PRODUCTION AND DEVELOPMENT U N I T E D N AT I O N S C O N F E R E N C E O N T R A D E A N D D E V E L O P M E N T WORLD INVESTMENT REPORT 2011 NON-EQUITY MODES OF INTERNATIONAL PRODUCTION AND DEVELOPMENT New York and Geneva, 2011 ii World Investment Report 2011: Non-Equity Modes of International Production and Development NOTE The Division on Investment and Enterprise of UNCTAD is a global centre of excellence, dealing with issues related to investment and enterprise development in the United Nations System. It builds on three and a half decades of experience and international expertise in research and policy analysis, intergovernmental consensus-building, and provides technical assistance to developing countries. The terms country/economy as used in this Report also refer, as appropriate, to territories or areas; the designations employed and the presentation of the material do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. In addition, the designations of country groups are intended solely for statistical or analytical convenience and do not necessarily express a judgment about the stage...
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