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Foreign Investment and Governance Shaping SEZ Performance in Uzbekistan
Corresponding Author(s) : Odilbekov Nozimbek Ortikbek Ugli
American Journal of Economics and Business Management,
Vol. 7 No. 10 (2024): October
Abstract
This study examines the impact of Foreign Direct Investment (FDI) on the performance of Special Economic Zones (SEZs) in Uzbekistan, with a focus on export growth, job creation, and infrastructure development. While SEZs are globally recognized for their contribution to economic growth, limited research exists on their outcomes in Uzbekistan. To address this gap, a multiple linear regression model was applied to data from 100 stakeholders, including policymakers, investors, and businesses within Uzbekistan's SEZs. The analysis revealed that FDI has a significant positive impact on SEZ performance, with a coefficient of 0.45, followed by governance quality (0.35) and infrastructure (0.25). The findings underscore the importance of foreign investment in fostering industrial growth and economic diversification. The study suggests that improving governance structures and infrastructure within SEZs is essential to fully leverage the benefits of FDI and recommends policy measures such as better investment incentives and streamlined bureaucratic processes to attract more foreign investors.
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- J. H. Dunning, "Toward an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, vol. 11, no. 1, pp. 9-31, 1980, doi: 10.1057/palgrave.jibs.8490593.
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- M. E. Porter, The Competitive Advantage of Nations. Free Press, 1990.
- D. Z. Zeng, "Global Experiences with Special Economic Zones: Focus on China and Africa," World Bank Policy Research Working Paper, no. 7240, 2022, doi: 10.1596/1813-9450-7240.
- J. Leong, Special Economic Zones and Competitiveness: The Case of Vietnam. Asia Pacific Economic Cooperation, 2013.
- A. A. Ambroziak and C. A. Hartwell, "The Impact of Investments in Special Economic Zones on Regional Development: The Case of Poland," Regional Studies, vol. 52, no. 10, pp. 1322-1331, 2018.
- D. Z. Zeng, "The Past, Present, and Future of Special Economic Zones and Their Impact," Journal of International Economic Law, vol. 24, no. 2, pp. 259-275, 2021.
- D. Z. Zeng, "Special Economic Zones: Lessons from the Global Experience," PEDL Synthesis Paper Series, vol. 1, no. 1, pp. 1-9, 2016.
- D. Z. Zeng, "Special Economic Zones: Lessons from the Global Experience," PEDL Synthesis Paper Series, vol. 1, no. 1, pp. 1-9, 2016.
- K. T. L. S. H. Lim, Strategies for Development of a North Korean Special Economic Zone Through Attracting Foreign Investment. Korea Institute for National Unification, 2005.
- L. Moberg, "The Political Economy of Special Economic Zones," Journal of Institutional Economics, vol. 11, no. 1, pp. 167-190, 2015.
- D. Brautigam and T. Xiaoyang, "China’s Investment in Special Economic Zones in Africa," in Special Economic Zones: Progress, Emerging Challenges, and Future Directions, 2011, p. 32.
- J. Chaisse and G. Dimitropoulos, "Special Economic Zones in International Economic Law: Towards Unilateral Economic Law," Journal of International Economic Law, vol. 24, no. 2, pp. 229-257, 2021.
References
J. H. Dunning, "Toward an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, vol. 11, no. 1, pp. 9-31, 1980, doi: 10.1057/palgrave.jibs.8490593.
A. Aggarwal and A. Kokko, "SEZs and Poverty Reduction: Evidence from Andhra Pradesh, India," International Journal of Emerging Markets, vol. 17, no. 8, pp. 1793-1814, 2021, doi: 10.1108/IJOEM-10-2019-0797.
T. Farole and G. Akinci, Special Economic Zones: Progress, Emerging Challenges, and Future Directions. World Bank Publications, 2011, doi: 10.1596/978-0-8213-8763-4.
T. Farole and L. Moberg, "It Worked in China, So Why Not in Africa? The Political Economy Challenge of SEZs," The Journal of Development Studies, vol. 50, no. 3, pp. 277-291, 2014, doi: 10.1080/00220388.2013.858129.
S. Frick and A. Rodríguez-Pose, "Special Economic Zones and Sourcing Linkages with the Local Economy: Reality or Pipedream?," The European Journal of Development Research, vol. 34, no. 2, pp. 655-676, 2022, doi: 10.1057/s41287-021-00396-0.
M. E. Porter, The Competitive Advantage of Nations. Free Press, 1990.
D. Z. Zeng, "Global Experiences with Special Economic Zones: Focus on China and Africa," World Bank Policy Research Working Paper, no. 7240, 2022, doi: 10.1596/1813-9450-7240.
J. Leong, Special Economic Zones and Competitiveness: The Case of Vietnam. Asia Pacific Economic Cooperation, 2013.
A. A. Ambroziak and C. A. Hartwell, "The Impact of Investments in Special Economic Zones on Regional Development: The Case of Poland," Regional Studies, vol. 52, no. 10, pp. 1322-1331, 2018.
D. Z. Zeng, "The Past, Present, and Future of Special Economic Zones and Their Impact," Journal of International Economic Law, vol. 24, no. 2, pp. 259-275, 2021.
D. Z. Zeng, "Special Economic Zones: Lessons from the Global Experience," PEDL Synthesis Paper Series, vol. 1, no. 1, pp. 1-9, 2016.
D. Z. Zeng, "Special Economic Zones: Lessons from the Global Experience," PEDL Synthesis Paper Series, vol. 1, no. 1, pp. 1-9, 2016.
K. T. L. S. H. Lim, Strategies for Development of a North Korean Special Economic Zone Through Attracting Foreign Investment. Korea Institute for National Unification, 2005.
L. Moberg, "The Political Economy of Special Economic Zones," Journal of Institutional Economics, vol. 11, no. 1, pp. 167-190, 2015.
D. Brautigam and T. Xiaoyang, "China’s Investment in Special Economic Zones in Africa," in Special Economic Zones: Progress, Emerging Challenges, and Future Directions, 2011, p. 32.
J. Chaisse and G. Dimitropoulos, "Special Economic Zones in International Economic Law: Towards Unilateral Economic Law," Journal of International Economic Law, vol. 24, no. 2, pp. 229-257, 2021.