Impact of direct investment on economic growth of Uzbekistan

Dilrabo HOJIYEVA^[1]

https://doi.org/10.53465/SJIR.1339-2751.2025.1.24-49

 

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.

Keywords: foreign direct investment, economic growth, portfolio investments, gross capital formation, Uzbekistan

JEL: F21, O11, E22

Fulltext: PDF

Submitted: 30. 1. 2025 | Accepted: 2. 6. 2025 | Published 15. 6. 2025

 

To cite this article (APA style):

Hojiyeva, D. (2025). Impact of direct investment on economic growth of Uzbekistan. Medzinárodné vzťahy – Slovak Journal of International Relations, 23(1), 24 – 49. https://doi.org/10.53465/SJIR.1339-2751.2025.1.24-49

 

Publisher: Bratislava University of Economics and Business | EUBA

ISSN online: 1339-2751

^[1] Dilrabo Hodjieva, Department of Foreign Economic Activities, Tashkent State University of Economics, Islam Karimov 49, 100066 Tashkent, Uzbekistan, e-mail: . https://orcid.org/0009-0008-9559-5743