Oil price, stock market, foreign direct investment and the economy: Case of Kazakhstan
The study aims to investigate whether there is a correlation between economic variables in Kazakhstan with stock market index, oil price and foreign direct investment. Additionally, previously written literature on the relationship between above mentioned variables is carefully explained. Conceptual framework helps to analyze theoretical comprehension of a subject. A regression analysis is employed in the study. The robust economic growth quickly can give a way to a recession not only in advanced countries but also in emerging economies. Both developed and emerging countries are impacted by oil price, yet both of them are impacted differently. The purpose of this study is to investigate whether there is any relationship between economy and oil price, foreign direct investment and stock market index in Kazakhstan. The study employed Ordinary Least Squares technique. The data was obtained from the National Statistics Agency of the Republic of Kazakhstan, National bank of Kazakhstan and Bloomberg agency. The study found out that all of the employed variables do positively affect GDP. The dependence on oil price in the long term can be considered as a problem of Dutch disease. The obtained results can be used in the economic policy of Kazakhstan, as well as a theoretical basis for further studies.