IMPACT OF FOREIGN INVESTMENTS ON THE ECONOMY OF UZBEKISTAN: CROSS-SECTORAL ANALYSIS
DOI:
https://doi.org/10.5281/zenodo.17411821Keywords:
Foreign Direct Investment (FDI), economic growth, Uzbekistan, agriculture, industry, services, sectoral analysis, employment, GDP, cross-sectoral impactAbstract
Foreign direct investment (FDI) plays a vital role in enhancing economic growth by transferring capital,
technologies, and management practices into host economies. This paper examines the cross-sectoral impact of FDI
on Uzbekistan’s economy by focusing on agriculture, industry, and services. Using time-series data from 1997 to 2023,
we analyze trends, patterns, and sectoral performance indicators such as output, employment, and growth rates. While
many studies concentrate on the aggregate effect of FDI on GDP, our research introduces novelty by conducting a sectorspecific
analysis. The findings highlight that foreign investments have significantly contributed to industrial development
and the expansion of the service sector, particularly in transportation, logistics, tourism, and ICT. At the same time,
agriculture has shown moderate but stable growth from FDI inflows. Econometric results confirm that FDI positively
correlates with sectoral employment and output, though the magnitude differs across sectors. This study provides
empirical evidence and practical recommendations for policymakers to optimize sector-targeted investment strategies
and strengthen Uzbekistan’s long-term economic development
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