Impact of Direct Investment on Economic Growth of Uzbekistan

Abstract

This research explores the effects of foreign direct investment (FDI), portfolio investment, and gross capital formation (GCF) on the economy of Uzbekistan between 2013 and 2023 with projections to 2029. Through the application of Ordinary Least Squares (OLS) and Vector Autoregressive (VAR) models, the research establishes strong positive relationships indicating that GCF and portfolio investment largely influence economic performance while FDI promotes technology transfer, competitiveness, and exhibits declining returns with time. With a 16% drop in FDI in 2023, investment is forecast to reach $48 billion by 2029. Policy recommendations are for diversification, regulatory overhaul, and investment.

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Identifiers

DOI

10.53465/sjir.1339-2751.2025.1.24-49

Citations and references