EFFECT OF SELECTED INSECTICIDE ON WHITEFLY (Bemisia tabaci) INFESTING BRINJAL PLANTS


 

893 

 

 

Attraction of Investment in Agriculture of Kazakhstan 
 

Dinar Abdrakhmanova 

Dept. of Finance, Faculty of Economics, Kazakh Agro-Technical University named after S. S. 

Seifulin, Kazakhstan 

 

Abstract 

Characteristic for conditions competition increase in the market of the investments, interfaced to 

world financial crisis, makes superrigid deman ds to investment decisions. In similar conditions 

the exit on the capital markets is one of the key advantages, providing to the enterprises their 

further development. Attraction of investments is interfaced to a number of difficulties. In 

connection with shortage of own means for financing of investment activity of the organizations 

by the basic source of financing there was an extra financing. Necessity of considerable volume 

of financial resources on development of investment projects does their attraction by a 

paramount problem of the enterprises-borrowers. Availability of credit sources of financing is 

limited both because of the high price of the extra capital, and owing to inability of the 

enterprises-borrowers to interest potential creditors in realization of investment projects. It 

causes necessity of an economic justification of efficiency and appeal of investment 

investments. Only having defined, what concrete parameters the company should possess, and 

having developed concrete ways and indicators of achievement of these parameters, it is 

possible in modern conditions effectively to develop business. Such aspiration creates 

investment appeal and is realized by means of basic tools considered in given work. 

Keywords: Investment, agriculture, planning, enterprises 

Introduction
1
 

 

Process of attraction of investments by the 

enterprises is characterized by a weak level 

of scrutiny non-financial, influencing 

investment appeal and efficiency of the 

organizations-borrowers, thereby reducing 

probability of reception of credit resources 

and worsening their conditions. 

 

In this connection pressing questions in 

research of process of attraction are a 

problem of an economic justification of 

efficiency of investment investments in the 

enterprises, and also development of 

                                                           
Corresponding author’s  

Email address: rk_bin@mail.ru  

methodical recommendations about increase 

of their investment appeal. 

 

Realization of investment policy in agrarian 

sector depends from a condition of the 

theoretical base considering specifics of 

branch and a complex feature of attraction 

of investments and manifestation of their 

efficiency in modern conditions. Dobrynin 

(2000), Komarov (2001), Agirbov (2002), 

etc. are engaged in research of these and 

other aspects of a problem. In works of 

these authors theoretical and methodical 

provisions, experience and the directions of 

investment activity are systematized and 

generalized. However, scientific and 

methodical approaches to development and 

the analysis, justification and an assessment 

 

 

 

Asian Journal of Agriculture and Rural Development 
 

 
 

journal homepage: http://aessweb.com/journal-detail.php?id=5005  
 

mailto:rk_bin@mail.ru


Asian Journal of Agriculture and Rural Development, 3(12)2013: 893-898 

  

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of investment processes in modern 

conditions, the directions and forms of the 

state support are studied insufficiently. 

Further development of questions of 

investment of agriculture taking into 

account ash value, national specifics, 

requirements of the market, research of 

factors and ways of increase of efficiency of 

investments is necessary. The expecial 

contribution to development of the given 

direction have brought world rating 

agencies, such as Standard and Poor’s, 

Moody’s Investors Service and Fitch 

Ratings to an estimation of risk of 

investment investments. 

 

Thus, on the basis of long-term researches in 

the economic literature scientific bases of 

investment activity, estimations of 

investment potential and a climate are 

reflected, rich practice of investment 

designing and an estimation of efficiency of 

investment investments is generalized. 

 

Over the past two decades Kazakhstan has 

achieved prominent results in transformation 

of economy. There has been created more 

transparent and less regulated, market-

oriented business and social environment 

attractive for investors. Today the investment 

policy in the Republic of Kazakhstan have 

own features. SWOT analysis of the 

investment policy in the Republic of 

Kazakhstan is given below. 

 

Table 1: SWOT-Analysis of investment attraction in Kazakhstan  

Strengths  Weaknesses 

1. Favorable business environment of the 

country sustained by economic and political 

stability.  

2. High investment attractiveness of the 

country due to rich natural and mineral 

resources.   

3. Favorable geographic position of 

Kazakhstan in proximity to major consumer 

markets of Central and Western Asia, Russia, 

India and China.    

4. Consciousness of state investment policy 

priority. 

5. Establishing specialized institutes and a 

resource base focused on facilitating 

investment inflow.   

1. Lack of a systematic approach for holding 

state investment policy.   

2. Instable national legislation and a lack of 

mechanisms for law and contractual relationship 

observance.    

3. Poor competitive conditions for investment 

attraction (customs and exchange arrangements). 

4.  Undeveloped infrastructure for investment 

attraction (special zones, financial, bank, 

information and analytical, consulting, transport 

infrastructure etc).   

5. Instable system of public administration 

related to investment attraction.  

6. Visa regime. 

Opportunities Threats 
1. Position of a regional leader for investment 

attraction volume.  

2. Creating a positive investment image of 

the country in the international capital markets.  

3. Building a systematic and consistent policy 

for investment attraction.  

4. Forming an effective state and private 

infrastructure for investment attraction.  

5. Ensuring a sustainable and balanced 

economic growth of the country through 

redistribution of investments from extractive to 

processing economic sector.     

 

1. Loss of investment attractiveness of the 

country resulted from raw material base 

depletion. 

2. Retained high-risk economy due to retained 

primary product disproportion in the economy 

and investments.    

3. Loss of available industrial potential for 

development of the country due to poor 

investments to capital stock.     

4. Strengthening a negative investment image of 

the country resulted from a lack of a clear-cut 

state policy and its implementation for investment 

attraction.   

5. Direct losses from the state budget due to 

ineffective usage of funds for investment 

attraction.     



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In the Republic of Kazakhstan prevailing 

sources of financing of investments into fixed 

capital of branch are own funds from 

investors (78, 3% of the total amount of 

investments). In a total amount of 

investments into fixed capital in agriculture 

of Kazakhstan the greatest investments fall 

on investment in cultivation of seasonal 

cultures (65, 8%) and animal husbandry (26, 

7%). 

 

Analyzing a condition of investments in the 

agriculture now, it should be noted that thee 

fixed capital of agriculture of the country past 

year was increased by 22% in 2013 year and 

reached 133 billion tenge. (table 2) 

 

Table 2: The investments into fixed capital of the agriculture in the country (tenge) 

Areas Investments into fixed capital A percentage 

Akmola 25270000 19 

Aktobe 1995000 1,5 

Almaty 13300000 10 

Atirau 16226000 12,2 

East Kazakhstan 2660000 2 

Zhambyl 4921000 3,7 

West Kazakhstan 5985000 4,5 

Karaganda 13965000 10,5 

Kostanay 32053000 24,1 

Mangstau 798000 0,6 

Pavlodar 1596000 1,2 

South Kazakhstan 14231000 10,7 

Total 133000000 100 

 

As we see from table 2, the greatest volumes 

of investment were aimed at the development 

of agriculture of Kostanay (24, 1%) and 

Akmola (19, 0%) areas. 

 

The developed economic conditions don't 

contain in Kazakhstan while real 

prerequisites for self-regulation of 

investment processes of agriculture. Need to 

pass to purposeful state regulation of 

activization of the investment process, 

capable to organize steady investment 

process and an intersectoral modulation of 

the capital in scales of branches and regions 

of Kazakhstan. The active investment policy 

of the government which has to pay a close 

attention to formation of the relevant 

investment structure of the market is 

necessary for the steady growth of economy. 

 

Methodology 
 

The purpose of research consists in 

development of theoretical and 

methodological positions, and also working 

out of methodical recommendations about 

formation of investment appeal of the 

enterprises-borrowers and development of 

means of its increase for attraction of 

investments into agriculture. 

 

 

Object in view achievement is defined by 

the decision of the following set of logically 

interconnected scientific problems: 

 - To define importance of extra financing in 

system of sources of financing of 

investments into agriculture; 

 - To reveal problems of attraction of 

investments of credit institutions; 

 - To investigate principles of an estimation 

of investment appeal of the enterprise-

borrower; 

 - To analyze techniques of an estimation of 

a rating of investment reliability of credit 

institutions, applicable to the Russian 

enterprises-borrowers; 

 - To define a set non-financial, influencing 

investment appeal of the enterprise-

borrower; 



Asian Journal of Agriculture and Rural Development, 3(12)2013: 893-898 

  

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  - To appropriate weight values to not 

financial indicators, influencing the general 

rating of investment reliability; 

 - To prove the chosen structure of the 

analysis of the enterprise-borrower for the 

purpose of assignment to it of a rating of 

investment reliability; 

 - To generate algorithm for an estimation of 

a financial and not financial component of 

risk not return of investments of the 

enterprise-borrower; 

 

 - On the basis of the formulated algorithm 

to develop tools of increase of investment 

appeal. 

 

As object of research the agricultural 

enterprises are considered. 

 

Object of research are the organizational-

economic relations arising at formation of 

investment appeal of the enterprises-

borrowers. 

 

As theoretical and methodological basis of 

research methodological principles, 

theoretical positions and the conclusions 

containing in fundamental and applied 

researches of domestic and foreign authors 

under the theory of investments have served, 

to investment planning and the analysis, 

rating estimation of investment reliability of 

the enterprises, the theory and practice of 

formation of investment appeal. 

 

For the decision of tasks in view research is 

planned to carry out with application of the 

system approach, scientific abstraction, 

classification, grouping, ranging, 

comparison, the analysis and synthesis, 

analogies. As methodology of researches in 

work methods of researches, methods of the 

system and comparative analysis, with 

application of the economic analysis will be 

used dialectic, is abstract-logic, statistical, 

functional, including: methods of an 

estimation of investment reliability of the 

enterprise-borrower, a rating estimation, an 

expert estimation, etc. 

 

Use of the specified methods will allow to 

prove the complex approach, will give the 

chance to study a role of investment appeal 

of the enterprise, to estimate its influence on 

the rating of investment reliability 

appropriated by banks. The basic methods 

of research will be offered - comparative, 

index, analytical, system-structural and a 

method of expert estimations. 

 

Set of used methodological base will allow 

providing finally reliability and validity of 

conclusions and practical decisions. 

 

As information base of researches the 

official data of the state statistics, is 

standard-methodical documents, metho-

dical materials of commercial banks, the 

data of leading rating agencies (Moody, s, 

Standard and Poor, s, Fitch, Expert РА), 

materials of scientifically-economic 

periodicals, resources of a global network 

the Internet, and also materials of domestic 

and foreign periodicals on the given 

problematic will serve. 

 

Scientific novelty of research consists in 

working out of new methodical 

recommendations about formation of 

investment appeal of the agricultural 

enterprises-borrowers and perfection of 

process of attraction of bank investments by 

them. 

 

Conclusion 

 

The most essential scientific results consist 

in the following: 

 

 - To define the factors increasing 

investment appeal of borrowers; 

 - To offer algorithm of definition of a rating 

of investment reliability of the enterprise-

borrower, providing use of a method of the 

complex estimation which are based on 

system of financial and not financial 

indicators, allowing to estimate investment 

appeal of the enterprise-borrower; 

 - To prove that for increase of an 

investment rating of the enterprise-borrower 



Asian Journal of Agriculture and Rural Development, 3(12)2013: 893-898 

  

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at attraction of bank investments should be 

considered not only the financial 

components defined by indicators of profit, 

profitability, profitableness, liquidity; 

 - To define not financial components of 

bank rating estimations of investment 

reliability of the enterprises-borrowers and 

their weight values of influence on total of 

investment appeal of the enterprise-

borrower are received; 

 - To generate algorithm of an estimation 

banks of an investment rating of the 

enterprise-borrower, providing a multiple-

factor estimation of system of indicators 

both financial, and not financial with the 

scales appropriated by it; 

 - To define influence of investment appeal 

of the enterprise-borrower on conditions of 

attraction of investments; 

 - To develop methodical recommendations 

about increase of investment appeal of the 

enterprises-borrowers, allowing within the 

limits of corresponding plans it is essential 

to influence a rating of investment reliability 

of the enterprise-borrower and, thereby, to 

raise probability of attraction of investment 

means of bank sector. 

 

For the account, the analysis, planning and 

increase of efficiency of investments, a 

choice of objects their scientifically 

reasonable classification is necessary for 

financing. Thought over and in the scientific 

plan reasonable classification of investments 

allows not only considering competently 

them, but also comprehensively to analyze 

level of their use, receiving on this basis 

objective information for development and 

realization of effective investment policy. 

(Figure 1). 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Figure 1: Definition of the general requirement for investments 

 

Ensuring necessary volume of attraction of external sources of financing 

Calculation of the sizes of attracted loans, expenses and term of return of means 

Assessment of the results reached by the organization, in comparison with the purposes 

established in the financial plan 

Choice of a way of attraction of financial resources 

Definition of the general requirement for investments 

Attraction of external 

financing 

Revision of the production 

program 

Revision of financial 

streams 

Definition of possibility of a covering of requirement for means at the expense of own 

sources and the extent of deficiency of resources 

Assessment of availability of external sources of financing 



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Revival of investment process in 

Kazakhstan has to happen first of all at the 

expense of internal resources, and foreign 

investments should assign only a 

supporting part because of small volume 

and low мобильности.структуры the 

market.  Active intervention of the state 

will accelerate the solution of global 

economic tasks in Kazakhstan. 

 

Thus, having defined concrete indicators of 

achievement of investment appeal, it is 

possible in modern conditions effectively 

and rationally to attract resources, reducing 

cost and increasing term of loans that in 

turn promotes development of business and 

increases its profitability. Such aspiration 

creates investment appeal and is realized 

by means of considered, in this dissertation 

work, the main tools. 

 

The practical importance of work consists 

that results of research can be used the 

enterprises with a view of formation and 

increase of investment appeal with the help 

нефинансовых, influencing a total rating 

of investment reliability of the enterprises-

borrowers at attraction of investments of 

bank sector. The obtained data also can be 

used the enterprises-borrowers with a view 

of management of the investment reliability 

and as consequence of investment appeal. 

 

References 

 

Agirbov, Yu. I. (2002). NTP and increase 

of innovative activity. International 

agricultural magazine, 1(2): 18-24. 

Dobrynin, V. A. (2000). How to make the 

village rich? Journal of Forage 

production, 1(6): 2-7. 

Komarov, V.V. (2001). An investment and 

leasing in the CIS. Journal of 

Finance and statistics, 3(3): 424-426.