THEORETICAL FOUNDATIONS AND MACROECONOMIC IMPACT OF FOREIGN DIRECT INVESTMENT: INSIGHTS AND IMPLICATIONS FOR DEVELOPING ECONOMIES
Annotatsiya
Foreign Direct Investment (FDI) serves as a pivotal catalyst for economic growth and sustainable development,especially in developing nations. This study examines the theoretical foundations of FDI and its multifaceted influence onmacroeconomic indicators. It highlights key channels through which FDI contributes to economic development, includingtechnology transfer, human capital enhancement, and integration into global value chains.Using Uzbekistan as a case study, the paper explores recent trends, challenges, and opportunities in attracting FDI,with a focus on institutional reforms and policy measures. Findings reveal that while FDI plays a crucial role in fosteringinnovation, creating employment, and boosting economic output, signifcant barriers such as regulatory inefciencies,political instability, and inadequate infrastructure persist. Addressing these challenges requires comprehensive strategies,including the establishment of a transparent investment climate, targeted reforms, and leveraging global best practices.This research provides actionable recommendations for policymakers to optimize FDI inflows and align them with longterm development goals.