Research on the effects of interest rate, inflation rate and gross domestic product (GDP) on the level of foreign direct investment (FDI) inflows (evidence from Uzbekistan)

Azimov , Shakhzod

Яшил иқтисодиёт ва тараққиёт · 2025-yil

Annotatsiya

This study investigates the macroeconomic determinants of foreign direct investment (FDI), focusing on theeffects of interest rates, inflation, and gross domestic product (GDP) on FDI inflows. Using a log-linear Ordinary LeastSquares (OLS) regression model and a dataset comprising 33 annual observations, we examine the relationship betweenthe natural logarithms of FDI, interest rates, inflation, and GDP. The results indicate that inflation has a statisticallysignificant and negative impact on FDI, suggesting that rising inflation discourages investment inflows. Interest ratesexhibit a positive and marginally significant effect on FDI, while GDP does not show a statistically meaningful relationship.Variance Inflation Factor (VIF) and Belsley-Kuh-Welsch diagnostics suggest moderate multicollinearity, particularlyinvolving GDP, but not at a level requiring model revision. These findings highlight the sensitivity of FDI to macroeconomicstability, especially inflation, and underscore the importance of maintaining a favorable investment climate

Maqola ma’lumotlari
MualliflarAzimov , Shakhzod
JurnalЯшил иқтисодиёт ва тараққиёт
Nashr sanasi2025-04-07
Jild3
Son4
TilIngliz
DOI10.5281/zenodo.15226763

DOI: 10.5281/zenodo.15226763 · Maqolaning asl sahifasi

Kalit so‘zlar

Variance Inflation Factor (VIF), Belsley-Kuh-Welsch diagnostics, A log-linear Ordinary Least Squares (OLS), Inflation, FDI, GDP, Uzbekistan, Interest rate.

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