The role of international agreements and impact of the "customs union" on the Kazakhstan's economic growth

Most countries have recently resorted to the experience of joint economy in a controlled integration. In the international community, multi-stage integration is important for mutual trade, production, strengthening political and economic ties. In order to elaborate and consolidate trade and economic relations first step is to unify national economy and develop a unified customs tariff policy. For instance, the European Union's enrichment of a high level of economic and political integration was based on the Customs Union. The post-Soviet union countries as Belarus, Russia and Kazakhstan followed such suit in 2010 and established a customs union to strengthen the mutually beneficial relations with each other in order to attract other Commonwealth of Independent States. Nevertheless, whether it is advisable for the economic growth of Kazakhstan to have a customs union with Belarus and Russia is considered in this paper. Since, the political interests of the countries are more affected, it has been hypothesized that the Customs Union does not play a big role for the growth of Kazakhstan's GDP. This research aims to examine the impact of international agreement the "Customs Union' on the development of Kazakhstan economy by using economic data of three-side trade. We accept the presumption that the economic growth matters in terms of international collaborations. Therefore, this study is about Kazakhstan's economic growth and impact of the international trade agreement on a state's economic development. In addition, we have added a work presents a SWOT analyse on "the Customs Union". We aim to find an answer to three main questions in this study: (1) What is the determination of trade performance? (2) What is Kazakhstan's performance? (3) Does international agreement affect economic growth of a state? The object of the study is to explore the impact of the integration process on the economy of Kazakhstan within the framework of the Commonwealth of Independent States. Subject of the research is to the find complex factors shaping contemporary reality in the integration process of "the Customs Union".In this paper, the place of the Kazakhstan in the global integration of the states can be found. In able to do this, first we found out the prospects for development of Kazakhstan's economy. The second task was to identify the prospects of creating a customs union as an example of cooperation between Kazakhstan, Russia and Belarus. Finally, the final stage of work was revealing a slight influence of the integration process on the development of economic indicators for Kazakhstan. In order to explain relations of international agreements on the development of Kazakhstan economy the Customs Union data used. The results mainly based on the dynamic panel data models, UN COMTRADE data for three countries: Kazakhstan, Russia and Belarus and statistics data of Ministry of National Economy of the Republic of Kazakhstan Committee from 2003 to 2013. The estimation results show that impact of international agreements on trade is not significant but play an important role in political aspect. In other words, such unions increase growth of mutual commodity turnover between the countries, but especially don't influence the economic growth of the country. Also SWOT analysis has been applied to show pros and cons of the Customs Union on Kazakh's Economy. Results of an assessment of the analysis of SWOT also showed that the unions render more positive effect on a political background of the country that too plays an important role for the state wellbeing of the country. Keywords: Economic Growth, International Agreements, the Customs Union, Kazakhstan.