IMPACT OF INFLATION, GDP, AND EXCHANGE RATE ON FDI IN UZBEKISTAN
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Keywords

Foreign Direct Investment (FDI), Macroeconomic factors, Inflation rate, Gross Domestic Product (GDP), Exchange rate, Investment environment, Econometric analysis, Time series data, Financial stability.

Abstract

This article analyzes the main macroeconomic factors affecting the flow of foreign direct investment in Uzbekistan. In particular, it is studied how the inflation rate, gross domestic product and exchange rate affect the investment environment. The main purpose of the study is to determine the effect of these indicators on the flow of FDI. Econometric approaches based on time-line data were used in the analysis process. The results obtained show that an increase in the level of inflation creates a certain degree of uncertainty for foreign investors, which negatively affects the volume of investments. GDP, which generally represents the size of a country's market, can have a positive impact, but in some cases this impact may not be significant enough. In terms of exchange rates, the results show that their stability is an important factor. Overall, the research results suggest that ensuring a stable macroeconomic environment in Uzbekistan is important for attracting foreign investment.

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