ABSTRACT
This research attempted to examine the determinants of the FDI inflows in Uzbekistan using time series data based on post independence performance. Method of study was chosen as regression analysis, as it helps to identify the most influential variables as well as shows the strength of the influence. Dependant variable was chosen as one lead FDI inflows in Uzbekistan on a yearly basis. Set of variables was used as suggested by the economic theory and previous studies. Results suggest that GDP per capita, PPP conversion rate, trade openness and dummy for internal instability are significant factors explaining FDI inflows. GDP per capita and dummy for internal instability were found to be most influential. Based on findings set of recommendations was developed stressing on trade, regional cooperation, improvement of institutions etc.
Keywords: foreign direct investment, transition economies, Uzbekistan
