ANALYSIS OF THE RELATIONSHIP BETWEEN FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN КAZAKHSTAN

The most important contribution expected from foreign investments for developing countries is that it helps to ensure the commercial balance and economic growth of the country. Empirical studies in-vestigating the relationship between foreign investments and economic growth have shown that capital movements have led to a high rate of economic growth in some developing countries, and also paved the way for economic crises in some countries. In this study, the effects of foreign direct investments on economic growth in Kazakhstan are tried to be revealed. For this purpose, the relationship between inter-national foreign investments and economic growth in Kazakhstan has been tested by using quarterly data on GDP, gross fixed capital formation, public expenditures, openness and foreign investments between 2005-2020. Beginning with the Augmented Dickey-Fuller (ADF) unit root test, the analysis ended with the Granger causality test, the VAR analysis. According to the results of the Granger causality test, the only reason for the growth of the Kazakhstan economy in the sense of Granger is openness. Examples of foreign investment affecting growth have not been found in the causality test. On the other hand, there was no statistically significant effect of foreign investments on economic growth.