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11_CORPORATE GOVERNANCE AND INNOVATIVE ECONOMIC DEVELOPMENT OF THE NORTH_
Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. № 2
СОВРЕМЕННЫЕ КОНЦЕПЦИИ И МЕХАНИЗМЫ УПРАВЛЕНИЯ ЭКОНОМИКОЙ MODERN CONCEPTS AND MECHANISMS OF MANAGEMENT OF ECONOMY
Analysis of Investment Factors of the Economic Mechanism of Reindustrialization
in the Republic of Kazakhstan
DOI: 10.34130/2070-4992-2019-2-61-66 UDK 332.145 (4/5)
L. A. Talimova, Karaganda economic University of Kazpotrebsoyuz (Karaganda, Kazakhstan)
N. Sh. Kasymova, International University of Kyrgyz-stan (Bishkek, Kyrgyzstan)
The article analyzes the investment factors of the economic mechanism of reindustrialization in the Republic of Kazakhstan at the present stage. The state policy of rein-dustrialization of the national economic system in the framework of achieving sustainable development priorities requires the development and implementation of an appropriate economic mechanism. The main objective of the economic mechanism is to ensure that economic measures achieve the objectives of industrial policy. The methodology of the study is to determine the main trends in the development of investment processes in the industry of Kazakhstan, through the analysis of the sectoral structure of investment and determine the main trends in the regions. According to the results of the analysis of statistical data, it is determined that the state policy of industrial-innovative and technological development aimed at the reindustriali-zation of industry could not adjust the trends of strengthening the role of the mineral sector, as evidenced by the growing trend of investment in the mining industries. In general, positive trends in the activation of investment activity in the Republic, in particular in the mining industry, have been established. The analysis of investments by branches of economy gives the basis to speak about their considerable positive dynamics for the considered period. Changes in the volume of investments in fixed assets were achieved primarily due to favorable trends in the economy of the Republic, successful investment policy, created conditions for the growth of domestic investment and attraction of foreign capital. The problem of the development of the investment process in the manufacturing and service industries should be solved by targeted government pro-
G. K. Zambinova, Karaganda economic University of Kazpotrebsoyuz (Karaganda, Kazakhstan)
R. K. Moldakhmetov, Karaganda economic University of Kazpotrebsoyuz (Astana, Kazakhstan)
grams, and the development of technological chains of processing of raw materials in the country.
Keywords: reindustrialization, economic mechanism, investment factors, sectoral structure of investment, investment policy.
Introduction
The strategy of further socio-economic development of the countries of the Eurasian economic Union, including the Republic of Kazakhstan, is directly related to the processes of reindustrialization of national economic systems. First, countries have different potential and, as ecological, socio-economic systems, are at different stages of their development and reindus-trialization [1]. Secondly, they use different models of reindustrialization: from the restoration of preexisting industries to the deep modernization of industries on an innovative basis, as well as the creation of fundamentally new industries, which requires significant investment [2].
Traditional approaches to socio-economic forecasting of national development, as a rule, do not take into account the complex and cyclical nature of the changes (processes); features of the models of reindustrialization; their relationship with the impact on the environment and the quality of life of the population [3-5]. In practice, long-term forecasts of the development of national economies are based on the current trends, ignore the integration processes be-
КОРПОРАТИВНОЕ УПРАВЛЕНИЕ И ИННОВАЦИОННОЕ РАЗВИТИЕ ЭКОНОМИКИ СЕВЕРА
Вестник Научно-исследовательского центра корпоративного права, управления и венчурного инвестирования Сыктывкарского государственного университета. 2019. № 2
tween them, as well as changes in the structure of their economy caused by the introduction of innovations and the transition to a new technological platform [6-8].
Thus, the state policy of reindustrialization of the national economic system in the framework of achieving sustainable development priorities requires the development and implementation of an appropriate economic mechanism. The economic mechanism of reindustrialization is designed to provide:
- expanded reproduction of the country's industrial potential;
- priority solution of environmental problems;
- progressive development and implementation of resource-saving technologies, biotechnologies, integrated waste-free production, redistribution of material, technical and human resources in the priority areas of environmental management, from nature-intensive to science-intensive industries, the development of adequate scientific knowledge, culture and education;
- formation of sources of investment funds for reindustrialization.
Ultimately, the objective of the economic mechanism is to ensure that economic measures achieve the objectives of industrial policy [9].
Main results
In this regard, the issues of identifying the role of investment factors in the implementation of the economic mechanism of reindustrialization in the Republic of Kazakhstan. Investments in fixed assets in the Republic of Kazakhstan increased by 17.2% in 2018. The mining industry remains the absolute leader in attracting financing. More than 40% of all attracted funds have been invested in this industry. More is invested in exploration and evaluation of mineral resources than in education, health and social services combined.
The total investment in fixed assets in 2018 amounted to 11 trillion 130 billion tenge (17.2% more than in 2017). The commissioning of new fixed assets and is closer to 16.7 trillion tenge.
The mining industry is traditionally the leader in terms of the total volume of attracted investments -4.5 trillion tenge were allocated here in 2018 (more than 40% of all investments) (Figure 1).
Two-thirds of all investments are related to oil production and processing, and about 10% - to ore
production and metal production. The rest of the industry unattractive to investors. Therefore, investments in many of them decreased by the end of 2018. Due to the implementation of large-scale projects in the West regions of the Republic, investments in the mining industry and quarrying in 2018 amounted to 4 trillion 500 billion tenge (an increase of 40.4% compared to 2017).
3 trillion 843.5 billion tenge was invested in oil and gas production - 58.6% of all investments in the industry of Kazakhstan. Infusions into other extractive industries are also increasing. For example, in fixed assets in coal mining - 85.5 billion tenge (+36.9%), in metal ores - 463.8 billion tenge (+24.7%).
In the manufacturing industry invested 3.6 times less (less than 1.25 trillion. tenge.) Much more money is still spent on mining than on processing. Significant investments in 2018 were made in real estate and logistics projects - in both cases, their volume exceeded 1.4 trillion. tenge. The role of manufacturing is somewhat less. The total investment in this industry in 2018 amounted to 1 trillion. 247.2 billion tenge (+20.5% by 2017). At the same time, almost 90% of these funds were directed to 5 industries:
— production of coal coke and refined petroleum products (558.7 billion tenge, +33.7%),
— metallurgical industry (242.9 billion tenge, +19.5%),
— food production (123.2 billion tenge, +27.3%),
— production of other non-metallic mineral products (116.9 billion tenge, +32.7%),
— production of chemical products (65.5 billion tenge, +21.1%).
Thus, a total of more than 4.4 trillion tenge was invested in the production and processing of oil in 2018 - 67.1% of all investments in the industry of the republic. In the extraction of metal ores and metallurgical industry - 706.7 billion tenge (10.8% of the total).
Investors are not interested in everything that is not related to oil and metals in Kazakhstan. The least investment in fixed assets was made in the category of "Professional, scientific and technical activities" - 43.2 billion tenge in 2018. The mining industry invests twice as much in 1 week.
The mining industry is leading not only in terms of attracted investments, but also in terms of growth. In 2018, this sector invested 40.4% more than in 2017 (Figure 2).
CORPORATE GOVERNANCE AND INNOVATIVE ECONOMIC DEVELOPMENT OF THE NORTH
Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. № 2
Mining industry Real estate transactions Transport and warehousing Manufacturing industry Electricity, gas, steam and air conditioning Agriculture, forestry and fisheries Water supply; sewerage system, waste collection-Wholesale and retail trade; repair of cars and..
Education
Accommodation and food services Administrative and support services activities Health and social services Construction Arts, entertainment and recreation Information and communication Financial and insurance activities Public administration and defence; compulsory-Professional, scientific and technical activities Provision of other services
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Figure 1 - Investment structure by industry in 2018 in the Republic of Kazakhstan, in billion tenge
Source: Compiled by the author from source (State Statistics Committee Kazakhstan, 2019) [10]
Figure 2 - Growth rates of investment by industry in 2018 in the Republic of Kazakhstan, in % to 2017
Source: Compiled by the author from source (State Statistics Committee Kazakhstan, 2019) [10]
The growth rates in the manufacturing industry and agriculture - sectors that should become drivers of growth of the economy of the republic - are much lower: 20.5% and 14.2%, respectively. At the same time, there are enough directions in Kazakhstan, the attractiveness of which for investors has decreased. At the end of the year decreased investments: - in professional, scientific and technical activities,
- in education,
- power supply, steam and gas supply, air conditioning,
- in public administration and defense, compulsory social security,
- in the administrative and support services,
- in retail and wholesale trade, repair of cars and motorcycles,
КОРПОРАТИВНОЕ УПРАВЛЕНИЕ И ИННОВАЦИОННОЕ РАЗВИТИЕ ЭКОНОМИКИ СЕВЕРА
Вестник Научно-исследовательского центра корпоративного права, управления и венчурного инвестирования Сыктывкарского государственного университета. 2019. № 2
- water supply, sewerage, waste collection and management,
- financial and insurance activities.
The amount of budget funds allocated for investments in fixed assets amounted to 1 trillion 395 billion tenge in 2018. Most of the national and local budgets received the logistics industry. 459.5 billion tenge was invested in transport and warehousing (32.6% of all investments in this direction).
Significant funding is and utilities sector:
- Investments in water supply, sewerage systems, waste collection and distribution amounted to 231.1 billion tenge - 79% of investments were provided by the state.
- In electricity, gas and steam, and also air conditioning of budgets invested 187,6 billion tenge - for 35.8% of the total.
Investments in exploration and evaluation of mineral reserves increased - 329.7 billion tenge (growth - 8.1%). This is more than education, health and social services combined.
The highest share of budget investments in public administration, defense and compulsory social security is 92.3%. The figure is 67.8 percent in education, 59.4 percent in health care and 50.9 percent in arts, entertainment and recreation.
Also, investments in environmental projects increased 2.5 times. If we talk about specific areas of investment, attention is drawn to a significant increase in investments in activities aimed at protecting the environment (a total of about 80.2 billion tenge). In
2017, the volume of investments in this area was only 32.5 billion tenge.
As for the regional distribution of investments, most of the funds for these purposes are directed to Akmola (25.7 billion tenge) and Zhambyl (12.7 billion tenge) regions. Least of all - in North Kazakhstan region (without investment) and Shymkent (less than 4 million tenge, that is, for each resident about 4 tenge). The most active investment resources are attracted by Aktobe (117.2 billion tenge) and Mangystau (108 billion tenge) regions.
As for the volume of investments per capita, the average volume of investments per capita decreased in three regions: in Akmola region - by 4.2%, Pavlodar - by 9.7%, in Astana - by 4%. In all other regions, there was an increase in attracting investment, and Shymkent showed the best indicators - with an average per capita calculation, the indicator increased almost 2.5 times. The average growth in Kazakhstan was 15.7%.
The most active investments are carried out in Atyrau region - almost 5.9 million tenge per person (9.7 times more than the national average). More than 1 million tenge per inhabitant per year is invested in Astana. But the indicators of Almaty are one and a half times inferior to the average-a little more than 400 thousand tenge (Figure 3). The worst thing in 2018 was in the Turkestan region - one resident had only 145.7 thousand tenge of investments - 4 times less than the national average.
Figure 3 - Investments per capita by regions in the Republic of Kazakhstan for 2018, in thousand tenge
Source: Compiled by the author from source (State Statistics Committee Kazakhstan, 2019) [10]
_CORPORATE GOVERNANCE AND INNOVATIVE ECONOMIC DEVELOPMENT OF THE NORTH_
Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. № 2
Conclusion
The analysis of investments by branches of economy gives the basis to speak about their considerable positive dynamics for the considered period. Changes in the volume of investments in fixed assets were achieved primarily due to favorable trends in the economy of the republic, successful investment policy, created conditions for the growth of domestic investment and attraction of foreign capital.
The state of the industry structure allows us to say that the most capital-intensive and investment-attractive are the industries, mainly mining. Thanks to their development, the country has received investment attractiveness. It should be noted that the indicators of development of investments in fixed assets in the sectors of "transport and communications", "construction" are improving.
Thus, the increase in the volume of investment in the national economy and the improvement of their
quality content depends on the following investment factors, especially on the mechanism of development of public-private partnership [11-13] and entrepreneurial activity [14] in the reindustrialization of the national economic system:
— economic, financial and investment attractiveness of the projects and programs presented by the investor, allowing institutional investors to receive a level of profitability not lower than the average market,
— participation of state, regional and local budget funds,
— effective and constantly rationalized system of regulation of investment activity of economic entities, focused on achieving the required performance [15],
— elimination, prevention and localization of negative trends in the implementation of investment projects.
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_КОРПОРАТИВНОЕ УПРАВЛЕНИЕ И ИННОВАЦИОННОЕ РАЗВИТИЕ ЭКОНОМИКИ СЕВЕРА_
Вестник Научно-исследовательского центра корпоративного права, управления и венчурного инвестирования Сыктывкарского государственного университета. 2019. № 2
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For citation: Talimova L. A., Kasymova N. Sh., Zambinova G. K., Moldakhmetov R. K. Analysis of Investment Factors of the Economic Mechanism of Reindustrialization in the Republic of Kazakhstan / / Corporate Governance and Innovative Economic Development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2019. No. 2. C. 61-66. DOI: 10.34130/20704992-2019-2-61-66.
