The Impact of Foreign Direct Investment on Post-Soviet Union Countries Economic Growth Evidence in Tajikistan, Turkmenistan, Uzbekistan, and the Kyrgyz Republic

Abstract

Foreign direct investment is an essential source of external money for emerging Central Asian nations that have limited access to appropriate capital. This article studies the influence of foreign direct investment and economic development on post-Soviet Union chosen nations from 1993 to 2017 using panel data. I utilized ordinary least squares (OLS) regressions. The empirical study is carried by utilizing yearly data on GDP growth and other factors from 1993 to 2017. As a result, we can conclude that the independent variables foreign direct investment, inflation, export, government spending, and unemployment rate are all significant to explain GDP growth because their corresponding p-values of the t-statistic are less than 5% and thus have an influence on GDP growth in selected Central Asian countries. These results have ramifications for policymakers, the government, and investors. The study had two specific goals: to determine whether or not there is a long-run relationship between foreign direct investment and economic growth, and to investigate whether or not there is a causal relationship between foreign direct investment and economic growth in these primarily selected Central Asian countries.