Harnessing foreign direct investment for sustainable economic growth in Central Asia: policy challenges and opportunities

This study examines the influence of Foreign Direct Investment (FDI) on economic growth and sustainabledevelopment within Central Asian nations, particularly emphasizing Kazakhstan, Uzbekistan, and Turkmenistan. Basedon an examination of contemporary empirical literature, the study underscores the beneficial impacts of foreign directinvestment on capital formation, technology transfer, and employment generation. The research further delineatesthe obstacles that constrain foreign direct investment inflows within the region, which encompass political instability,deficiencies in infrastructure, and a dependence on extractive industries. This paper advocates for the advancement ofGreen Foreign Direct Investment (FDI), highlighting its significance in fostering long-term sustainable development andsafeguarding environmental integrity. The principal policy recommendations encompass the enhancement of governanceframeworks, the improvement of financial markets, the diversification of foreign direct investment across various sectors,and the implementation of tax reforms designed to incentivize green investments. The results indicate that by tacklingthese challenges, Central Asian nations can more effectively utilize foreign direct investment as a mechanism forsustainable economic development.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2024-11-07
DOI
https://doi.org/10.5281/zenodo.14222035
Primary Topic
Belt and Road Initiative
Type
article
Field-Weighted Citation Impact
0.00
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article

Harnessing foreign direct investment for sustainable economic growth in Central Asia: policy challenges and opportunities

Zenodo (CERN European Organization for Nuclear Research)
Belt and Road Initiative
article

Harnessing foreign direct investment for sustainable economic growth in Central Asia: policy challenges and opportunities

article en

Abstract

This study examines the influence of Foreign Direct Investment (FDI) on economic growth and sustainabledevelopment within Central Asian nations, particularly emphasizing Kazakhstan, Uzbekistan, and Turkmenistan. Basedon an examination of contemporary empirical literature, the study underscores the beneficial impacts of foreign directinvestment on capital formation, technology transfer, and employment generation. The research further delineatesthe obstacles that constrain foreign direct investment inflows within the region, which encompass political instability,deficiencies in infrastructure, and a dependence on extractive industries. This paper advocates for the advancement ofGreen Foreign Direct Investment (FDI), highlighting its significance in fostering long-term sustainable development andsafeguarding environmental integrity. The principal policy recommendations encompass the enhancement of governanceframeworks, the improvement of financial markets, the diversification of foreign direct investment across various sectors,and the implementation of tax reforms designed to incentivize green investments. The results indicate that by tacklingthese challenges, Central Asian nations can more effectively utilize foreign direct investment as a mechanism forsustainable economic development.

Zenodo (CERN European Organization for Nuclear Research)
Industry, innovation and infrastructure
Openalex Percentile: Top 50%
Belt and Road Initiative
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Harnessing foreign direct investment for sustainable economic growth in Central Asia: policy challenges and opportunities · Zenodo (CERN European Organization for Nuclear Research) (2024) | TGRS Research Map | TGRS