Investment Cooperation in Central Asia: Prospects and Challenges (original) (raw)
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Uzbekistan is often seen as an attractive destination for foreign direct investment (FDI), largely thanks to its vast supply of natural resources. However, inward FDI in Uzbekistan remains below expectations due to the lack of transparency and stability of the domestic regulatory environment. Uzbekistan has recently undergone lengthy reforms aiming at economic liberalization. In particular, a review of investment laws suggests an improvement of the investment climate in the country. In the course of these reforms, Uzbekistan concluded a bilateral investment treaty (BIT) with Turkey in 2018, which in essence follows the Turkish Model BIT. By revising its BITs-related policies, Uzbekistan has sent a positive message to foreign investors, suggesting a more favorable investment climate than that of the previous generation of its BITs. The new Uzbekistan-Turkey BIT also clarifies host states regulatory powers, by adding provisions on social and environmental standards as well as public health. That the main concern of foreign investors stands as the lack of transparency and predictability of the host country legislation is widely recognized, rather than high standards of the investors. Therefore, Uzbekistan ultimately aims to create a transparent and predictable investment environment, whilst the same time adhering to social responsibilities.environment. Uzbekistan has recently undergone lengthy reforms aiming at economic liberalization. In particular, a review of investment laws suggests an improvement of the investment climate in the country. In the course of these reforms, Uzbekistan concluded a bilateral investment treaty (BIT) with Turkey in 2018, which in essence follows the Turkish Model BIT. By revising its BITs-related policies, Uzbekistan has sent a positive message to foreign investors, suggesting a more favorable investment climate than that of the previous generation of its BITs. The new Uzbekistan-Turkey BIT also clarifies host states regulatory powers, by adding provisions on social and environmental standards as well as public health. That the main concern of foreign investors stands as the lack of transparency and predictability of the host country legislation is widely recognized, rather than high standards of the investors. Therefore, Uzbekistan ultimately aims to create a transparent and predictable investment environment, whilst the same time adhering to social responsibilities.
Foreign direct investment and government policy in Central and Eastern Europe
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The 1990s have been a period of extraordinary politics in Central and Eastern Europe (CEE). This chapter discusses how the transition from state to market has created bureaucratic barriers to entry, but also windows of opportunity for foreign direct investment (FDI). The high costs and high investment risks associated with FDI in CEE are a reflection the institutional development. Thus, inflows of FDI have been largest in those countries that made most progress in establishing a market-oriented institutional framework.
Russian Journal of Economics, 2020
Foreign direct investment (FDI) is viewed as one of the most crucial forms of capital inflows and significant drivers of economic growth in numerous countries. In particular, developing countries, emerging economies and countries engaged in the process of development have recognized the crucial importance of FDI as a critical contributor to their economic progress and increasing economic opportunities. The following research investigated and identified the determinants of FDI in the Central Asian countries, specifically Tajikistan, Kazakhstan, Kyrgyzstan, Turkmenistan and Uzbekistan, between 2000 and 2017. The methodology employed in the first part included comparative analysis of the foreign investment trends and gross domestic product (GDP), as well as an endogenous growth model. The result showed that five variables are robustly significant of FDI determinants: FDI (previous year), GDP, labor force, trade openness and tax. Additionally, this paper demonstrates that among the most significant FDI contributors are China, Russia and Japan as well as European countries because of the economic opportunities available; however, the USA is considered by Central Asian countries to offer the most opportunities for security control considerations rather than economic opportunities. Furthermore, the results suggest that the authorities in the Central Asia region should enhance the stability of their economic growth, labor force, trade openness and tax regulations to attract more FDI to the region.
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Journal of Comparative Economics, 1997
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PROTECTION OF FOREIGN INVESTMENT IN CASE OF DETERIORATION OF INVESTMENT СLIMATE IN UZBEKISTAN
This graduation qualification thesis aims to analyze the investment climate of Uzbekistan with a particular focus on its deterioration and examine measures to improvement of the investment climate which eventually lead to the protection of the investor`s rights. This subject will be examined from a historical, present and prospective point of view. The thesis will demonstrate the achievements in the investment climate in comparison with the previous investment climate. It will compare dates taken by international organizations. The thesis is divided into two chapters. Chapter I provides a succinct overview of the nature and regulation of foreign investment as well as related issues and discusses the historical background of foreign investment and its protection. It will also discuss foreign investment as a necessity for developing host countries. This Chapter will conclude by discussing the risks and challenges faced by investor pre and post establishment in host states. Chapter II will explore the existing international investment legal framework with a focus on identifying the international norms and minimum standards on protection of investors. Those international minimum standards will be discussed as standards for assessing domestic investment laws and related policies. Lastly, it will make recommendations to the policy-makers in Uzbekistan for policy refinements and modernization of its investment policy framework in line with international norms and standards. Accordingly, a critical description and analysis of the current system will be provided. Then, it will be identified some of the basic problems of the current investment climate of Uzbekistan and addresses some of the main suggestions for improvements of the investment climate and protection of the investor`s rights. The findings will contribute toward improved policies necessary to meet Uzbekistan's current challenge of achieving higher and more sustained economy.
Purpose of this study is to analyze the current state of trade and investment relations between Afghanistan and Central Asian countries, to examine trade problems (lack of necessary fundamentals to facilitate the flow of trade and investments, insecurity etc.) and recommend practical ways to increase the volume of trade. The first part of the report deals with current volume of trade and investment between Afghanistan and Central Asian countries. Then, it will focus on Afghanistan's regional trade potential and moreover try to find solutions for current trade problems which are a huge obstacle for improvement of trades between Afghanistan and Central Asian countries.
Russian Journal of Economics (RuJE), 2020
Foreign direct investment (FDI) is viewed as one of the most crucial forms of capital inflows and significant drivers of economic growth in numerous countries. In particular, developing countries, emerging economies and countries engaged in the process of development have recognized the crucial importance of FDI as a critical contributor to their economic progress and increasing economic opportunities. The following research investigated and identified the determinants of FDI in the Central Asian countries, specifi-between 2000 and 2017. The methodology employed in the first part included comparative analysis of the foreign investment trends and gross domestic product (GDP), as well as an en-dogenous growth model. The result showed that five variables are robustly significant of FDI determinants: FDI (previous year), GDP, labor force, trade openness and tax. Additionally, this paper demonstrates that among the most significant FDI contributors are China, Russia and Japan as well as European countries because of the economic opportunities available; however, the USA is considered by Central Asian countries to offer the most opportunities for security control considerations rather than economic opportunities. Furthermore, the results suggest that the authorities in the Central Asia region should enhance the stability of their economic growth, labor force, trade openness and tax regulations to attract more FDI to the region.