Foreign Direct Investment and Domestic Investment On the Economic Growth of the Uzbekistan - A VECM Analysis - International Journal of Academic Research in Business, Arts & Science | IJARBAS

Issue: 5, Volume: 2, Year: 2020

Foreign Direct Investment and Domestic Investment On the Economic Growth of the Uzbekistan – A VECM Analysis

Date of Publication : 18, May, 2020

Date Of Acceptance : 13 May, 2020

Author: KOBILOV ANVAR ESHPULOTOVICH

Co Author: KURBONOV OYBEK ABDUSATTAROVICH

Area of research / Subject: Foreign Direct Investment and Domestic Investment On the Economic Growth / Economics

The present paper deals with the relationship between FDI, GDP and DI using a vector error-correction model (VECM). The empirical model is based on quarterly data for the period 2010-2019 in Uzbekistan. The result of the Johansen cointegration rank test shows that there exists a long-run relationship among the three variables. The Granger causality test indicates a positive significant bidirectional relationship between GDP and Domestic Investment. GDP Granger causes FDI and a change in the GDP indicates in advance a change in the level of FDI The variance decomposition indicates that fluctuations in FDI are explained by the shocks in GDP (55.0 per cent) and Uzbekistan’s domestic investment has a greater impact on growth than FDI.

Keywords: Foreign Direct Investment, Domestic Investment, economic growth, vector error correction model,

Cite this article:

Author(s), [1] KOBILOV ANVAR ESHPULOTOVICH, 2 KURBONOV OYBEK ABDUSATTAROVICH, (2020). “Foreign Direct Investment and Domestic Investment On the Economic Growth of the Uzbekistan – A VECM Analysis”. Name of the Journal:  International Journal of Academic Research in Business, Arts and Science, (IJARBAS.COM), P, 75- 86. DOI: http://doi.org/10.5281/zenodo.3832977 , Issue: 5, Vol.: 2, Article: 8, Month: May, Year: 2020. Retrieved from https://www.ijarbas.com/all-issues/

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2.5 - 2020 - 8 - Foreign Direct Investment and Domestic Investment On the Economic Growth of the Uzbekistan - A VECM Analysis

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Keywords : Foreign Direct Investment, Domestic Investment, economic growth, vector error correction model,

DOI (Digital Object Identifier) Number: http://doi.org/10.5281/zenodo.3832977

Serial: 8 Download Page: 75-86

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