Muhammad Eid Balbaa,
Tashkent State University of Economics,
[email protected], ORCID: 0000-0002-9924-777X
Abstract. Foreign Direct Investment (FDI) plays a crucial role in shaping the economic landscape of emerging markets, providing both capital and technological advancements necessary for economic development. In Uzbekistan, FDI has become an important factor in driving the nation’s digital transformation and fostering economic growth. This paper analyzes the impact of FDI inflows and outflows on Uzbekistan’s Gross Domestic Product (GDP) from 2005 to 2022, with a particular focus on how these investments contribute to technological progress and the expansion of the digital economy. Using econometric models, this study explores the relationship between FDI, GDP, and economic development, highlighting the role of foreign investments in supporting digital infrastructure, innovation, and productivity. The results suggest that while FDI inflows have had a mixed impact on GDP, particularly with a slight negative correlation due to capital outflows and domestic investment opportunities, they have significantly contributed to technological advancements and digital economic growth. This research contributes to the ongoing discussion on how developing nations can harness FDI to support sustainable digital economic growth. Policy recommendations include enhancing the regulatory environment to attract more technologically advanced FDI, promoting domestic and international partnerships, and fostering innovation ecosystems that align with global digital trends.
Keywords: Foreign Direct Investment (FDI), Digital Economy, Economic Growth, Technological Progress, Digital Transformation, Sustainable Development.