Participation of Kazakhstan in Regional and Global Chains

Abstract

With the increase of Global Value Chains (GVCs) and industrial networks, international commerce has become increasingly complicated; trade in GVCs accounts for over 80% of global trade (UNCTAD, 2013). Due to being a relatively small economic player on the global arena, Kazakhstan should actively engage in international trade. Overall, literature on the topic suggests that Kazakhstan holds a lower than average position in GVCs; however, it also outlines the potential for its consolidation in the long-term on condition that proper measures are taken by the government as the main decision maker. The author proposes several factors that influence position of Kazakhstan in GVCs, as well as a more detailed assessment of the advantages and challenges of GVCs of Kazakhstan. Moreover, number of recommendations were provided as a result of analyzing of literature review and responds of interviews. In conclusion, the research suggests recommendations, such as developing of agriculture, manufacturing, logistics and attracting FDIs