DOI: 10.63294/afucon/vol12iss1/127 ISSN:
FOREIGN CAPITAL AND DOMESTIC INVESTMENT IN UZBEKISTAN: EVIDENCE-BASED PRIORITIES FOR INVESTMENT POLICY
Islomova Mufassal MuzaffarovnaThis paper examines the balance between foreign capital (FDI) and domestic investment in Uzbekistan’s industrial modernization. Evidence suggests that investment effectiveness depends on institutional quality and competitive discipline, whereas excessive incentives may entrench quasi‑monopolies and crowd out domestic capital. We argue for refocusing investment policy from inflow volumes to value‑added, localization and sustained outcomes, and outline priorities for mobilizing domestic resources (reinvestment, savings) alongside selective FDI.