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Domestic investment potential: A new dimension of a nation's economic power

Sherali MukimovTashkent Institute of Finance
ABI

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AbstractIn macroeconomics textbooks and research papers, authors traditionally try to cover the role of investments in economic growth, especially through econometric modeling FDI, GDP, exports, unemployment, etc. An overwhelming majority of relevant studies have shown that investments, whether they are foreign or not, have a significant impact on the growth of GDP. Consequently, these findings are now serving as a toolkit for policymakers while conducting national investment policy. However, according to Marxist theory investment policy is merely a superstructure constructed on the base - sources of investments and investment relations. This paper aims to investigate those sources under the new category “domestic investment potential”. Our findings indicate that domestic investment potential is a quantitative economic indicator that should play a role in the process of investment policymaking.

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