A STUDY ON THE IMPACT OF INSTITUTIONAL QUALITY ON FOREIGN DIRECT INVESTMENT IN UZBEKISTAN
Keywords:
Institutional Quality, Foreign Direct Investment, System GMMAbstract
This study examines the relationship between the institutional quality and inward FDI in Uzbekistan over 2012-2023. To achieve the above mention objective, fixed effect and two step system GMM estimation techniques were employed. The empirical results revealed positive and significant relationship between government integrity, CPI, property rights and FDI inflow, while trade freedom has no but positive impact on the dependent variable. On the contrary, we found a negative and significant influence of labour freedom on FDI. Apart from institutional quality variables, the findings support the importance of macroeconomic indicators, namely GDP and population growth, total natural resources rents, inflation, as determinants of FDI inflows.
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