THEORETICAL FOUNDATIONS AND MACROECONOMIC IMPACT OF FOREIGN DIRECT INVESTMENT: INSIGHTS AND IMPLICATIONS FOR DEVELOPING ECONOMIES
DOI:
https://doi.org/10.5281/zenodo.17403369Keywords:
Foreign Direct Investment (FDI), economic growth, technology transfer, human capital, macroeconomic indicators, institutional reforms, investment climate, developing economies, Uzbekistan, global value chains, sustainable development, policy measures, regulatory inefciencies, infrastructure development.Abstract
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 on
macroeconomic indicators. It highlights key channels through which FDI contributes to economic development, including
technology 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 fostering
innovation, 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 long
term development goals.
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