Foreign Investment and Governance Shaping SEZ Performance in Uzbekistan
Abstract
This study examines the impact of Foreign Direct Investment (FDI) on the performance of Special Economic Zones (SEZs) in Uzbekistan, with a focus on export growth, job creation, and infrastructure development. While SEZs are globally recognized for their contribution to economic growth, limited research exists on their outcomes in Uzbekistan. To address this gap, a multiple linear regression model was applied to data from 100 stakeholders, including policymakers, investors, and businesses within Uzbekistan's SEZs. The analysis revealed that FDI has a significant positive impact on SEZ performance, with a coefficient of 0.45, followed by governance quality (0.35) and infrastructure (0.25). The findings underscore the importance of foreign investment in fostering industrial growth and economic diversification. The study suggests that improving governance structures and infrastructure within SEZs is essential to fully leverage the benefits of FDI and recommends policy measures such as better investment incentives and streamlined bureaucratic processes to attract more foreign investors.