Analysis of the Competitiveness, Complementarity, and Trade Combination of Kazakhstan and China in the Oil and Gas Trade

Binghan Du, Jappar Juman (), Aiymzhan Tulegenovna Makulova, Assel Valitkhanovna Khamzayeva and Xuan Zhai
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Binghan Du: Department of International Relations and World Economy, Al-Farabi Kazakh National University, Almaty 050040, Kazakhstan
Jappar Juman: Department of International Relations and World Economy, Al-Farabi Kazakh National University, Almaty 050040, Kazakhstan
Aiymzhan Tulegenovna Makulova: School of Digital Technologies, University NARXOZ, Almaty 050035, Kazakhstan
Assel Valitkhanovna Khamzayeva: Department of International Relations and World Economy, Al-Farabi Kazakh National University, Almaty 050040, Kazakhstan
Xuan Zhai: Department of International Relations and World Economy, Al-Farabi Kazakh National University, Almaty 050040, Kazakhstan

Economies, 2024, vol. 12, issue 7, 1-14

Abstract: The oil and gas trade is one of the main ways to promote regional economic development by improving the effectiveness of resource allocation. While regional energy cooperation could lead to growth in the energy trade, blind investment will reduce effective yields. Kazakhstan and China maintain a stable oil and gas trade, but resource exports to China are not growing as expected. The aim of this research is to analyze the competitiveness and complementarity of Kazakhstan and China in the oil and gas trade, as well as the main factors affecting the oil and gas trade between Kazakhstan and China. By creating a linear regression equation to analyze the gravity model of the oil and gas trade between Kazakhstan and China, it was revealed that a 1% growth of the gross domestic product in both countries would lead to a 1.471% increase in the oil and gas trade. However, an increase in oil and gas production in Kazakhstan will not contribute to the expansion of the oil and gas trade with China. Kazakhstan and China could improve their oil and gas trade by strengthening financial cooperation, improving energy efficiency, increasing investment in infrastructure such as oil refineries and pipelines, and developing new oil and gas fields in Kazakhstan.

Keywords: energy cooperation; competitiveness; complementarity; trade combination; oil; gas; Kazakhstan; China (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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