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FOREIGN EXPERIENCES IN ATTRACTING FOREIGN DIRECT
INVESTMENT
Uralbaeva Zebiniso Turgun qizi
Tashkent State University of Economics
E-mail: zebinisoorolboyeva@gmail.com
Phone number: +998993755514
https://doi.org/10.5281/zenodo.10941620
In the current era of globalization, not every country can deny that the
future development of its economy is involved in investments. In addition, the
Republic of Uzbekistan pays great attention to investments to develop its
economy, mainly to increase the amount of foreign direct investment. As
everyone knows, not every country can rise without learning foreign
experiences. Understanding and rational use of world experiences in attracting
foreign direct investment is important for promotion and sustainable growth.
Foreign direct investment is one of the main tools for economic growth,
technological progress and increasing the amount of employment, but attracting
foreign investment depends on infrastructure improvement, institutional
capacity building, economic policy, and economic situation in the state. The
wealth of our country in quality raw materials indicates the importance of
attracting investments.
Also, the demand for investments abroad is currently high. It is necessary
to develop foreign relations, strengthen existing ones and liberalize foreign
economic activity, create legal and regulatory, social, and other various
conditions that ensure the involvement of foreign direct investment in the
economy of our state. As you know, in the area of the Republic of Uzbekistan, to
increase the efficiency of activities to attract foreign direct investment, to inform
foreign investors about the opportunities and potential of our country, to attract
and master foreign investments, State and economic authorities, in order to
improve the Coordination of the activities of local executive authorities, a
resolution of the president of the Republic of Uzbekistan “on measures to further
improve the mechanisms of attracting foreign direct investment to the economy
of the Republic” dated April 29, 2019 PD-4300 was developed. In order to
ensure the implementation of the decision, there are tax incentives for foreign
investors, benefits on loan interest rates in order to increase the amount of
foreign investment in the territory of Uzbekistan.
Without attracting foreign investments in leading sectors with high
demand in the world market, it is impossible to carry out structural changes, to
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International scientific-online conference
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equip organizations with modern techniques and technologies, mining, and re-
equipment. First of all, if we consider the definition of foreign investment: -
“foreign investment is investments that are introduced from the territory of one
country to the territory of the second country, exported
1
. In addition, V. A.
=Vakhobov believes that " foreign direct investments are those that allow the
investor to have effective control over their economic activities, allowing the
investor to own a long-term, firm share of at least 10 percent or shareholder
capital”
2
. In other words, foreign direct investment is to invest in an enterprise
in the territory of a particular country for a long period of time and, as a result,
to own at least 10 percent of the askance.
Currently, the following factors
determine the development and increase of foreign direct investment attraction
in a situation based on foreign experiences:
-
stability of the investment environment.
-
positive changes in the exchange rate.
-
improvement of the tax system, the presence of specific mechanisms in
taxation.
-
the development of decisions and laws governing the activities of foreign
investment in tax legislation.
Figure 1. In 2019-2023, the flow of foreign direct investment into the
economy of Uzbekistan amounted to billions of U.S. dollars.
Analyzing Figure 1 data, we can say that the flow of foreign direct
investment involved in the economy of our state has grown over the years, in a
way that does not consider the figure in 2020. The main reason for this decline is
the Covid-19 pandemic, but in 2021 this figure increased by almost 2.5 times.
1
Dictionary of International Trade. Global Marketing Strategies, 2015, page 82
2
A. V. Vaxobov. Xorijiy investitsiyalar. – Toshkent: Moliya, 2010. – O‘quv qo‘llanma
2,3
1,7
4,2
9,5
11
0
2
4
6
8
10
12
2019
2020
2021
2022
2023
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The highest trend, however, was recorded in 2023, with an increase of nearly 6.5
times compared to the lowest. This is due to the favorable conditions created for
foreign investors on the territory of our country, as a result of which the volume
of foreign direct investment has increased.
In conclusion, there are various, strategies, approaches to attracting foreign
direct investment to the country's economy, and the use of foreign experience in
attracting foreign direct investment is an important direction to increase
economic competitiveness and support sustainable development. Countries can
develop well-founded policies and initiatives tailored to their specific conditions
and thus increase economic growth and prosperity.
References:
1.
Decree of the President of the Republic of Uzbekistan from April 29, 2019,
"On measures to further improve the mechanisms of attracting foreign direct
investment to the economy of the Republic” PD-4300.
2.
Dictionary of International Trade. Global Marketing Strategies, 2015, page
82
3.
A. V. Vakhobov. Foreign investment. - Tashkent: Finance, 2010. - Tutorial.
4.
A. Sh. Bekmurodov. Foreign investment. - Tashkent: Economics, 2014-
study guide.
5.
S. B. Rakhmonova. Attracting foreign direct investment is a guarantee of
economic development. Article. - Tashkent: 2022.
6.
Official website of the Statistical Committee of the Republic of Uzbekistan -
https://www.stat.uz/uz/
7.
Uralovich, K. S., Toshmamatovich, T. U., Kubayevich, K. F., Sapaev, I. B.,
Saylaubaevna, S. S., Beknazarova, Z. F., & Khurramov, A. (2023). A primary factor
in sustainable.
8.
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БОШҚАРИШ АМАЛИЁТИНИ ТАКОМИЛЛАШТИРИШ ОРҚАЛИ МОЛИЯВИЙ
БАРҚАРОРЛИГИНИ
ТАЪМИНЛАШ:
Yangi
O'zbekiston
taraqqiyotida
tadqiqotlarni o'rni va rivojlanish omillari //Yangi O'zbekiston taraqqiyotida
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9.
Qizi, Aminova Nilufar Umarboy. "ISSUES OF FINANCING OF INVESTMENT
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10.12 (2023): 8-14.
10.
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