INVESTMENT INDICATORS: IMPACT ON TECHNOLOGICAL MODERNIZATION AND ECONOMIC GROWTH IN KAZAKHSTAN

Abstract

Investment indicators play a pivotal role in driving technological modernization and economic growth, particularly in developing economies like Kazakhstan. Despite its resource-rich economy, Kazakhstan faces challenges in sustaining long-term growth due to gaps in investment efficiency and technological advancement. This study examines the impact of key investment indicators—such as foreign direct investment (FDI), domestic investment, and public infrastructure spending—on technological modernization and economic growth in Kazakhstan from 2003 to 2023. Using time-series data, the research employs stationarity tests and the autoregressive distributed lag (ARDL) model to analyze cointegration and dynamic relationships among variables. The findings reveal a strong long-term relationship between investment indicators and economic growth, with domestic investment and infrastructure spending showing significant positive effects. However, FDI exhibits mixed results, contributing to technological transfer but also creating dependency in certain sectors. In the short term, private sector investment and technological innovation are positively correlated with growth, while inflation and inefficient capital allocation hinder progress. The study underscores the importance of aligning fiscal and monetary policies to enhance investment efficiency, foster technological adoption, and create a conducive environment for both domestic and foreign investors. By addressing these challenges, Kazakhstan can achieve sustainable economic growth and reduce its reliance on resource-driven development.