Contribution to GDP

Contribution to GDP: not all projects positively impact GDP growth at the investment stage

Position Wind Power Plant (WPP) Project in Kazakhstan Wind Power Plant (WPP) Project in China
1 Investment in a WPP project with equipment purchase worth 1 bln tenge Investment amount = 1 bln tenge Investment amount = 1 bln tenge
2 GDP Contribution GDP = 0 tenge (equipment is imported and no taxes/duties are paid during customs clearance) GDP = 1 bln tenge (equipment is domestically produced)
3 Total GDP Contribution GDP = 0 tenge GDP = 2 bln tenge (as the equipment is manufactured and exported for the WPP project in Kazakhstan)
4 Absolute GDP Contribution GDP = -1 bln tenge (as the opportunity to produce this equipment in Kazakhstan is lost: time, market, and competitive advantages are missed) GDP = 3 bln tenge (further technology refinement, market potential growth, spare parts supply and servicing)

GDP = GVA + Net Taxes (VAT for imports = 0)