Modeling of Social Effect of Foreign Direct Investment in the Regions Of Kazakhstan
Abstract
In this paper, the authors have made an attempt to evaluate the social effect of foreign direct investment (FDI) in the regions of Kazakhstan. For this purpose, the dynamics of FDI for currently operating foreigninvested enterprises and six socio-economic indicators of the regions has been studied for the period 2003−2013 based on the database of the Agency of Statistics of the Republic of Kazakhstan. The experiment involved 16 regions of Kazakhstan (14 regions and 2 cities of republican status: Almaty and Astana).
The study was performed using the mathematical apparatus of the “simplified” version of the analytic hierarchy process (AHP) developed by T. Saaty, and the MS Excel program. The developed economic and mathematical model for assessment of the FDI effect on the quality of life and well-being of the population in the regions is hypothetical since it uses expert evaluations of a hypothetical expert. The authors formulated a hypothetic possibility to get the tool for assessment of the social effect of FDI in the regions of Kazakhstan, i.e. the Rating of the regional priority of factors (RPF Rating).
The obtained RPF rating has enabled a prioritization of the factors, which determine the quality of life in the regions of the country, and calculation of the cumulative social effect of FDI in Kazakhstan, highlighting the directions of its influence on each of the six factors in a regional context. The study did not reveal the negative impact of FDI on socio-economic development of the regions; moreover, the cumulative social effect of FDI was revealed to be positive for all regions of Kazakhstan. According to the authors, the RPF Rating can be an important tool to enhance the validity of the socio-economic policy in the development of publicprivate partnerships in the regions of Kazakhstan, as well as to strengthen the positive social effect of FDI in the future. All these will contribute to the long-term growth of the quality of life and well-being of the population in the regions of the Republic.
Keywords
Full Text:
PDFReferences
Frank Vanclay (2002). Conceptualizing social impacts. Environmental Impact Assessment Review, 22, 183-211.
Zhang, Y., Li, H., Li, Y. & Zhou, L.-A. (2010). FDI Spillovers In An Emerging Market: The Role Of Foreign Firm’s Country Origin Diversity And Domestic Firms’ Absorptive Capacity. Strategic Management Journal, 31, 969–989.
OECD (2008). The Social Impact of Foreign Direct Investment.
Hong, E. & Sun, L. (2011). FDI and Total Factor Productivity in China: A spatial Dynamic Panel Analysis. Oxford Bulletin of Economics and Statistics, 73, 6, 0305-9049: 771-791.
Lan, J., Kahinaka, M. & Huang, X. (2012). FDI, Human Capital and Environmental Pollution in China. Environmental and Resource Economics, 51, 255-275
Herzer, D. & Nunnenkamp, P. (2013). Inward and Outward FDI and Income Inequality: Evidence from Europe. Review of World Economics, 149, 395-422.
Ivushkina, N. V. (2001). Sotsialnyy effekt investitsionnykh protsessov: diss. ... kand. ekon. nauk [Social effect of investment processes: processes: published summery of a PhD thesis]. Moscow, 126.
Sindyashkina, Ye.N. (2010). Voprosy otsenki vidov sotsialnogo effekta pri realizatsii investitsionnykh proektov [Assessment questions of social effect types at the implementation of investment projects]. Problemy prognozirovaniya [Problems of forecasting], 1, 140-147.
Volgina, N. (2009). Mezhdunarodnoye proizvodstvo v Rossii. Vozmozhnyye effekty ot sozdaniya mezhfirmennykh svyazey [International production in Russia. Potential effect of inter-company connections development]. Trends of Economics and Management, III, 05, 65-71.
Tuleganova, S. & Murzabekova, K. (2010). Aspekty upravleniya investisionnoy politikoy [Aspects of managing investment policy]. Vestnik KazNPU [KazNPU Bulletin], 1 (24), 17-24. — (Ecommercial).
Batyrbekova, A. G. (2011). Strategiya realizatsii gosudatstvenno-chastnogo partnerstva [Public-private partnership realization strategy]. Karaganda: AO «Regionalnyy tsentr GChP Karagandinskoy oblsti» [Public Private Partnership Regional Center of the Karaganda Region].
Beysembinova, A. (2013). Investitsionnaya deyatelnost v sisteme gosudarstvenno-chastnogo partnyorstva. Teoriya, metodologiya, perspektivy: diss. ... d-ra filos. nauk (PhD) [Investment activities in the frame of public-private partnership. Theory, methodology, prospects: published summery of a PhD thesis]. Alamaty, 179.
Bobkov, V. N. (2014). Kachestvo i uroven zhizni naseleniya [Quality and social standard of living of the population]. Ekonomika truda. Uchebnik [Labor economics. Textbook]. Edited by Asalieva A. M. Moscow: Infra-M, 336, 227-251.
Khanova, A. Sotsialnyy effekt. Praktika izmereniya [Social effect. Practice of measurement]. Laboratoriya sotsialnykh innovatsiy Cloudwatcher [Laboratory of Cloudwatcher social innovations]. Available at: http://www.cloudwatcher.ru/analytics/1/view/36/ (date of access: 16.02.2015).
Saati, T. (1993). Prinyatie resheniy. Metod analiza ierarkhiy [Decision-making. A hierarchy analysis method]. Tran. From English by R.V. Vachnadze. Moscow: Radio i svyaz [Radio and communication], 278.
Rakhmatullayeva, D. Zh. & Kakizhanova, T. I. (2014). Sotsialnyye effekty deyatelnosti neftegazovykh kompaniy-nedropolzovateley v RK [Social effects of oil and gas companies (mineral developers) operation in Kazakhstan]. Kazakhstan-Spektr [Kazakhstan-Spectrum], 3(69), 66-77.
Dinamika monetarnykh i nemonetarnykh kharakteristik urovnya zhizni rossiyskikh domokhozyaystv za gody postsovetskogo razvitiya. Analiticheskiy doklad [Dynamics of monetary and non-monetary characteristics of living standards of Russian households during the post-Soviet development period. Analytical report]. Head of authoring team Ovcharova L. N. Moscow: Fond «Liberalnaya missiya» [Liberal Mission fund], 108.
Rakhmadullayeva, D. Zh (2014). Rol sotsialnykh otchyotov v vyyavlenii sotsialnykh investitsiy [Role of social reports for identification of investments social effects]. Novyye perspektivy razvitiya ekonomicheskikh nauk. Innovatsii i riski. Sb. XXII mezhdunarodnoy nauchno-prakticheskoy koneferentsii, M., 01 fevr. 2014 g. Ch 1 [New development prospects of economic sciences. Innovations and risks of XXII international scientific and practical conference, M., Febr, 01, 2014. P.1.]. Moscow: Analiticheskiy tsentr «Ekonomika i finansy» [Economics and Finances Analytical Center], 29-32.
Nogin, V. D. (2004). Uproshchyonnyy variant metoda analiza ierarkhiy na osnove nelineynoy sverki kriteriev [Simplified analytic hierarchy process based on non-linear criteria convolution]. Zhurnal vychislitelnoy matematiki i matematicheskoy fiziki [Journal of calculus mathematics and mathematical physics], 7, 44,
Krylov, V. I., Bobkov, V. V. & Monastyrnyy, P. I. (1972). Vychislitelnyye metody vysshey matematiki [The higher mathematics computing methods]. Edited by Mysovskikh I.P. Minsk: Vysshaya shkola [Hiher School], 1, 584.
Bazara, M. & Shetti, K. (1982). Nelineynoye programmirovanie. Teoriya i algoritmy [Nonlinear programming. Theory and algorithms]. Moscow: Mir, 583.
Golub, J. & Van Loun, Ch. (1999). Matrichnyye vychisleniya [Matrix calculations]. Moscow: Mir, 548.
Tutygin, A. G. & Korobov, V. B. (2010). Preimushchestva i nedostatki metoda analiza ierarkhiy [Analytic Hierarchy Process advantages and disadvantages]. Izvestiya RGPU im. A.I. Gertsena [News of the Herzen State Pedagogical University of Russia], 122, 108-115.
DOI: https://doi.org/10.15826/recon.2015.2.015
Copyright (c) 2018 Dinara Zh. Rakhmatullayeva, Vyacheslav N. Bobkov, Yerzhan B. Zhatkanbayev
Сertificate of registration media Эл № ФС77-80764 от 28.04.2021
Online ISSN 2412-0731