The impact of foreign investment and tax-based governance on the economy of Uzbekistan
The impact of foreign investment and tax-based governance on the economy of Uzbekistan

Summary/Abstract: Today, no country can achieve proper growth and development without active participation in international trade and the global economy. Many developing countries, faced with the need to upgrade and strengthen the economy in the long term to access new technologies, have faced the challenge of managing technical knowledge, which in most cases is significantly associated with a lack of resources. Strengthening the local economy in a situation of resource scarcity is associated with the potential role of foreign direct investment in relation to the long-term growth and development of the economy in these countries. Therefore, in this study, using panel data for the years 2022-2024 of Uzbekistan, a model has been presented to examine the impact of taxes and attracting foreign direct investment on the economy using the panel data method. The variables used included: gross domestic product, taxes, foreign direct investment inflows and government performance. The results showed that the tax variable has a negative effect on attracting foreign direct investment, and the variables of gross domestic product, government performance and growth in attracting foreign capital have a positive effect on direct performance. It should be noted that the reduction in taxes on foreign capital and as an incentive from the government to attract capital is effective and can lead to higher growth in attracting investment, and in other economic sectors, the amount of tax revenue should be managed by the government.

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