The Role of Foreign Direct Investment (FDI) in Uzbekistan's Economic Growth

Abstract

This paper examines the role of Foreign Direct Investment (FDI) in driving economic growth in Uzbekistan. As a country transitioning from a centrally planned economy to a market-based system, Uzbekistan has increasingly recognized the importance of FDI in fostering industrialization, enhancing technological capabilities, and integrating into the global economy. The study highlights the trends in FDI inflows, particularly following the economic reforms initiated in 2016, and identifies key sectors such as energy, manufacturing, and telecommunications as major beneficiaries. The paper further explores the impact of FDI on capital formation, industrialization, job creation, and human capital development, demonstrating how these investments have contributed to Uzbekistan's robust economic growth. The findings suggest that while FDI has significantly bolstered economic development in Uzbekistan, ongoing challenges such as regulatory hurdles and the need for further reforms must be addressed to sustain and enhance these growth dynamics.