Graduate School of International Studies Ajou University
This paper investigates the relationship between foreign direct investment (FDI) inflows and economic growth of Uzbekistan. It examines the contribution of FDI to the economic growth of the country. The economy of Uzbekistan and FDI inflows to the country were reviewed in the primary stages of the study. During the research, macroeconomic activity variables such as gross domestic product (GDP) and its components: FDI inflows, domestic investment, household final consumption expenditure, government final consumption expenditure, export and import of Uzbekistan were examined to analyze the relationship between FDI and economic growth of the country. Aggregated regression model based on the Keynesian model of national income was used to estimate the impact of FDI inflows on economic growth. Secondary data were used in the analysis from the World Bank database and the State Statistics Committee of the Republic of Uzbekistan. The period of analysis is from 1992 to 2009. The result shows that FDI flows to Uzbekistan have a positive significant effect to the economic growth of the country.