ASSESSING THE IMPACT OF FOREIGN DIRECT INVESTMENT ON UZBEKISTAN'S ECONOMIC DEVELOPMENT: AN EMPIRICAL ANALYSIS (2004–2023)
Abstract
This study aims to empirically examine the short-term and long-term relationships of factors influencing the economic development of the Republic of Uzbekistan. The focus is on analyzing both the positive and negative aspects of foreign direct investment (FDI) in Uzbekistan's economy. To achieve this objective, factors related to the country's economic potential and traditional economy from 2004 to 2023 were selected for analysis. A quantitative research approach was employed, utilizing econometric modeling techniques. Specifically, Ordinary Least Squares (OLS) and Vector Autoregression (VAR) models were applied effectively to time series data. By implementing policy measures in tax incentives and infrastructure development, Uzbekistan can enhance its investment climate, increase FDI inflows, and promote sustainable economic growth.