Impact of governance indicators on foreign direct investme in Kazakhstan

Purpose of the research – Authors assess the impact of six governance indicators, as follows: Voice and Accountability, Political stability and absence of violence/terrorism, Government effectiveness, Regulatory Quality, Rule of Law and Control of Corruption on Foreign direct investment in Kazakhstan.

Research methodology – the ARDL model (autoregressive distributed lag model) was used and the data are taken from the official website of the World Data Bank and cover the period of 2002-2022 years.

The significance of the research – is that it is one of the first studies in this area and assesses how important government indicators are for foreign investors and in what direction government policy should be directed.

Research results – the research showed that the rule of law and anti-corruption indicators do not affect foreign investment flows in either the short or long term. Other indicators have some short-term and long-term impact. Analyzing the situation in the country and the world, the authors concluded that the lack of influence of these two indicators is explained by the fact that foreign investment flows are mainly directed to the mineral resources sector.

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