The Effective Usage of Investmentsin Regionsof the Republic

JEL: 677.024

THE EFFECTIVE USAGE OF INVESTMENTSIN REGIONSOF THE REPUBLIC

OF KAZAKHSTAN

Aidarova A.B., Tulemetova A.S.,DosmuratovaE.E.

M.AuezovSouthKazakhstanStateUniversity, Shymkent, Kazakhstan

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Abstract: Investments play an important role both on macro - and at the micro level. In fact, they define the future of the country in general; the certain subject of managing and are the locomotive in development of economy. Investment activity in regions of Kazakhstan is focused on improvement of quality of production, introduction of the knowledge-intensive production and effective use of sources of financing. In this article the deep analysis of development of regions of Kazakhstan in compliance with the program of the forced industrial and innovative development is carried out and ways of development of regional economy are planned.

Key words:investment activity, investment projects, social problems, gross regional product, socio-economic development, national income, gross domestic product

METHOD OF EXPERIMENT

The world practice and experience of development of the countries testifies that state regulation leads to effective implementation of regional investment policy. Investment activity in regions of Kazakhstan is focused on improvement of quality of production, introduction of high technology, change of the directions of use of investments and their sources of financing.

Value and formation of regional investment policy is caused by a variety of reasons:

- for development and deployment of investment policy regions haven't enough means;

- the features influencing investment processes are inherent in each region;

- in the conditions of the accruing interregional competition it is necessary to pursue regional investment policy competently.

For these reasons the role of local authorities for effective use of the investments put in regions sharply increases.

The theoretical basis of the study was the works of domestic and foreign scientists, the data of the Agency of the Republic of Kazakhstan on Statistics Program of Forced Industrial-Innovative Development of Kazakhstan for 2010-2020. We used the following methods: traditional content analysis of documents, statistical data analysis methods.

Prerequisites for the formation of an efficient regional investment in policies are investment potential and self-sufficiency in the region. Only by doing an assessment of these indicators, we can talk about the future development of the region. In the development of investment projects should take into account a number of conditions:

- Priority ofsocial problems, i.e. investment should be socially oriented;

- Priority ofthe interests of the region's population, i.e. investments should be regionally oriented;

- The integration of environmental factors in the calculation of the use of investment in the regions.

In assessing the level of socio-economic development of regions and their place in the economy of Kazakhstan can be used absolute values and growth rates and economic - social product, national income (the sum of gross output of the production industries), their share in social product or national income and per capita (in comparison with the average level for the Republic of Kazakhstan), the value of fixed assets, capital investments, and so on.

Similar rates are determined by industry. In this study the existing structure of industry, agriculture and other sectors (uses gross, marketable, clean production, employment, value of fixed assets) is determined by its effect on the level of development and performance of the regional production efficiency, structural changes are considered, given their score with terms of matching natural, labor, material resources requirements of scientific and technological progress, social and environmental conditions of the area.

RESULTS AND DISCUSSIONS

The main indicator of successful social and economic development of the regions of Kazakhstan is the growth of the gross regional product (GRP). Over the years of independence, there is a stable positive dynamics of GRP growth in all regions of the country.

Regional structure of GRP in the past 20 years has undergone significant changes. So, if in 1993 the largest share of the East Kazakhstan, Kostanay and Karaganda regions (they accounted for a third of the total GRP), then at the end of 2015 almost half of the country's economic potential (47.7% of GDP) is concentrated in four regions - Almaty and Astana, Atyrau and Karaganda regions.

This is due to the structural transformation of the economy, the industrial development of the country, the creation of new industries and large enterprises in the regions. Thus, the sharp rise in the share of GRP Almaty (from 7.1% in 1993 to 18% in 2015 year) flax-intensive development of the service sector, covering telecommunications, credit and financial, insurance and other industries in this sphere, and more than four fold increase in the share of Atyrau region (from 3% in 1993 to 13% in 2015) and three-fold - the share of Mangistau region (from 2.1 to 6.8%) - the dynamic development of the oil and gas industry. However, the share of the four agricultural regions - Jambyl, North Kazahstan, Akmola, Kyzylorda regions - in 2013 accounts for only a tenth of GDP (10.8%), 2 times less than in the level of 1993 (22.1%). The greatest reduction in participation in the production of republican gross regional product for the period of independence is observed in Kostanay (7%), East-Kazakhstan (5.5%) and North Kazakhstan (5.1%) regions.

Even more dramatic changes are observed in the regional structure of industrial-laziness. A significant increase in industrial production in the last 20 years there has been oil and gas regions - Atyrau and Mangistau regions, whose share in domestic industrial production increased from 1.6% in 1993 to 23.9% in 2015 and 3.5% to 12.3%. By 2015, their share was already 36.2% of the country's industrial production, an increase of more than 7 times. This significantly reduced the amount of contribution to the country's industrial city of Almaty (15.1%) and East Kazakhstan region (9.1%).

If we consider the process of changing the structure of the GDP's independence at the level of each region, it is necessary to note the growth of the share of industry in the structure of GRP in 7 of the 16 regions. Significant growth of this indicator in the Kyzylorda, West Kazakhstan and Atyrau regions has allowed them to take a leadership position among the regions in 2015. The largest decline in the share of industry-in GRP is observed in Almaty, where the growth of GRP is provided primarily through the development of the service sector.

Minor structural changes GRP over the past 17 years are found in Karaganda and Pavlodar regions, where the share of industry in GRP remains high. In Almaty region, this figure is stable below the national average.

Kazakhstan continues to move towards the development of the industry. Confirmation of strengthening the economic independence of the country is a real GRP growth in 2015 compared with the previous year.

Evidence emerging in recent years, improvements in diversification of the economy is the growth of the manufacturing sector and its share in GRP structure, labor productivity in the manufacturing industry.

Thus, in 2015 year compared with the previous year the volume index of manufacturing industry and the share of manufacturing in GRP increased in 15 of 16 provinces and cities, labor productivity in the manufacturing industry - in all regions of the country.

Major investments and resources in the economy focused region with high GRP. And the gap in the level of industrial development of the regions in the years of independence is gradually increasing, creating disproportions in regional development, which threatens the growth of social tension in the country.

In the manufacture of GRP is largest share of South region (33.9% of the total GRP). This is not surprising, since a significant portion of GRP gives Almaty (52.5% of the gross regional product in the region). There are many industrial enterprises, numerous research institutions, leading research in virtually all fields of modern science, financial and banking institutions.

The second region is the production of GRP West Kazakhstan (28.6% of the total GRP). The greatest value of GRP gives Atyrau region (42.7% of the total GRP for the West Kazakhstan region). In this area, there are rich deposits of oil and gas, potash and sodium salts, borate and others.

As an outsider on this indicator is located East region (5.7% of the total GRP).

In terms of industrial production the first place belongs to the West Kazakhstan region (57.2% of total industrial production). Am-role in industrial production plays again Atyrau region (47.4% of the West Kazakhstan region).

The main indicators of development of the regions of Kazakhstan in 2015 are shown in table 1.

Table 1. The main technical and economic indicators of regional development of Kazakhstan for 2015 [1]

Regions / Grossregionalproduct,
bln. tinges / The volume of industrial production, bln. tinges / Gross
Output (services)of agriculture, bln. tinges / Investments in fixed capital, bln. tinges / Retail trade bln.tinges
Total in RK / 27 334,1 / 15 929,1 / 2 286,0 / 5 010 / 3 865,8
They are:
West of Kazakhstan:
Aktobe / 1 433,1 / 1 253,9 / 116,0 / 386 / 244,1
Atirau / 3 334,3 / 4 319,8 / 33,5 / 1 077 / 157,4
West- Kazakhstan / 1257,4 / 1480,7 / 82,8 / 170 / 107,8
Mangistau / 1782,9 / 2064,9 / 6,6 / 369 / 90,0
Total / 7807,7 / 9119,3 / 238,9 / 2002 / 599,3
North of Kazakhstan:
Akmola / 811,5 / 236,4 / 246,2 / 123 / 101,5
t. Astana / 2298,3 / 177,4 / 1,8 / 572 / 353,3
North- Kazakhstan / 672,6 / 116,1 / 353,5 / 69 / 92,4
Kostanai / 1162,3 / 564 / 394,4 / 151 / 125,7
Pavlodar / 1379,8 / 964,7 / 94,5 / 208 / 186,3
Total / 6324,5 / 2058,6 / 1090,4 / 1123 / 859,2
East of Kazakhstan:
East-Kazakhstan / 1553,7 / 822,9 / 202,2 / 242 / 362,5
South of Kazakhstan:
Almaty / 1 286,4 / 444,2 / 291,0 / 373 / 171,9
t. Almaty / 4865,4 / 532,7 / 1,5 / 415 / 1068,6
Jambil / 616,9 / 185,7 / 89,4 / 107 / 103,4
South-Kazakhstan / 1431,4 / 377,2 / 207,9 / 273 / 194,0
Kizilorda / 1067,2 / 1063,1 / 45,4 / 222 / 96,6
Total / 9267,3 / 2602,9 / 454,0 / 1390 / 1634,5
Center of Kazakhstan:
Karaganda / 2 380,9 / 1325,4 / 119,3 / 253 / 410,3

Last place in the production of industrial products was fixed again for the eastern region, although this region is rich in lead, zinc, tin, tungsten, molybdenum, manganese, gold, mercury, antimony, and brown coal, oil shale and building materials.

Agricultural production, the palm belong stains North-Kazakhstan region (47.7% of the total for the Republic of Kazakhstan). Priorities performKostanai (36.2% of the total for the Northern region). There are indicators of North Kazakhstan (32.4%).

In Kostanai region is dominated by black soil, chestnut and brown soil, which enabled the successful development as crop (cereals, vegetables and potatoes) and livestock (meat of cattle and small ruminants, poultry, milk and other foods).

The soils of the North-Kazakhstan region are similar to soils Kostanai region and therefore there is also developed agriculture (cereals, vegetables, potatoes, meat, milk, eggs, etc...).

The last place in the production of agricultural crops belongs to the Central region (5.2% of total agricultural production). On soils Karaganda area, which provides a central region, dominated by steppe, semi-desert and desert plants. Therefore, agriculture is somewhat difficult.

In the development of the regions play a vital role investment in fixed assets, as the ratio of investment to GRP provides insight on the effectiveness of their IP-use. The largest capital investments were given to the western region, which accounted for 40% of the total. The largest values of investments are in the Atyrau region (53.8% of the total volume on the West Kazakhstan). This is not surprising, since in this area is rising sharply, industrial production, i.e., development and increase in the production of industrial goods depends on how much to invest in it.The lowest investments are in Eastern Region (only 4.8% of the total investment in the RK).

The most effective investment is in the Central region. Here is everytinge gives GRP on 9.41 tinges. Satisfactorily used investments in the Eastern region - 6.42 tinges, in the South - 6.67, worst of all investments are used in the Western region - 4.35 tinge GRP KZT investment.

In retail trade dominates South region, accounting for 42.3% of total retail sales of RK. Here occupies leading positions in Almaty (65.4% of the southern region) Almaty is the financial center of the country, is the first city in terms of population and therefore there is the highest retail sales.

The second region in retail trade is north of the country, the scope of which is in the range of more than 22% (22.2%).

If you determine how much tinge retail trade is a four-right, the regions on this indicator are arranged as follows: West - 352.6 thousand. Tinge; center - 210.9 thousand tinges. This can be explained by the fact that the highest salary received by inhabitants of western Kazakhstan, and the least - the inhabitants of the South Kazakhstan. [2]

Investors channel funds only when you create an attractive environment for investment. Therefore, attracting investment, you need to aim their effective use. Statistical information shows that the investments in Kazakhstan's economy systematically from year to year.

The most accurate measure of the effective use of investment return on assets can be regarded as producing this indicator (Table 2) and by making the analysis, the following conclusions are made.

Table 2. Capital productivity in regions of Kazakhstan for 2015 year in tinge / KZT

Regions / Capital productivity / Regions / Capital productivity
Total RK: / 5,46 / East Kazakhstan:
including: / East Kazakhstan region / 6,42
East Kazakhstan / Southern Kazakhstan:
Aktobe region / 3,71 / Almaty region / 3,45
Atyrau region / 3,10 / Almaty / 11,72
West Kazakhstan region / 7,40 / Zhambyl / 5,77
Mangistauregion / 4,83 / South Kazakhstan region / 5,24
Total / 3,90 / Kyzylorda region / 4,81
North Kazakhstan: / in total / 6,67
Akmola region / 6,60 / Central Kazakhstan:
Astana / 4,02 / Karagandaregion / 9,41
North-Kazakhstan region / 9,75
Pavlodarregion / 7,70
Intotal / 5,63

Note: Adapted from Table 1.

As can be seen from Table 2, less efficient use of investment West region of Kazakhstan, where almost all of the areas included in it (except for the West Kazakhstan) are lower than the average return on assets. The greatest return on assets shows Center of Kazakhstan - Karaganda region. All other regions - use investments more efficiently, productively, than the average for the country.

To align the regional economic development, the state has adopted a program has adopted a program of forced industrial-innovative development (PFIID), which provides for diversification and increased competitiveness not only traditional industries, but also the creation of new industries - the economy of the future. According to this program in the Western region will not release different types of products, goods and services. So, in this region is provided to develop oil and gas engineering, various building materials, transport and communications infrastructure, which will reduce the difference in the management of the investments.

CONCLUSION

Develop dynamically scheduled North and South Kazakhstan, mainly due to the high potential of the region and country. Almaty, Astana. Almaty agglomeration will be the center of growth to include the satellite towns in Kapchagai direction. Astana will be transformed into a network zone of growth through the creation of development corridors and the involvement of cities Karaganda agglomeration and Shuchinsk-Borovsky resort. In Almaty, Astana concentrate service functions that have a multiplier effect on the industry-oriented domestic demand expected results and impacts of investments. [3]

Implementation of this program will develop uniformly all regions of the country, therefore, reduce disparities, and improve the stability of the domestic economy.The formation of a new regional policy investment of the Republic of Kazakhstan, within the framework of the policy of accelerated modernization and implementation of the strategies industrial-innovative development should be the strategic direction of development, aimed at reducing the existing differences between regions in the levels of socio-economic well-being of the population and their social and economic development.

REFERENCES

1. The regions of Kazakhstan in 2015 Statistical compilation // Agency of the Republic of Kazakhstan on Statistics / Edited A.Smailova. - Astana, 2015
2. Operational statistics. Site of the Agency of the Republic of Kazakhstan on Statistics //
3. Decree of the President of the Republic of Kazakhstan on March 19, 2012 № 958 "On state program for accelerated industrial and innovative development of Kazakhstan for 2010-2015 and Repeal of certain decrees of the President of the Republic of Kazakhstan." "Kazakhstan truth" of 31.03.2010, № 74 (26135).