Oil Boom, Chewing-Gum, and Oil Fund

When Kazakhstan was trying to go out from economic, social and political transition, suddenly faced well-known problems of the oil-rich countries. It is absolutely vital that Kazakhstan evaluate its oil-income for going out from transition and developing itself in accordance with the conditions of market economy. After the suggestion of the IMF, Kazakh Government constituted an oil fund in order to prevent its economy from volatility of oil-revenue and price-chocks in the oil market. This paper aims to reveal the impacts of the Kazakh Oil Fund on monetary budgetary and macroeconomic stabilities of the country through time-series regression analysis. In doing so, I test also to what extent an oil fund works in a transition country.