Assessing investment climate of Republic of Uzbekistan in perspective of South Korea

Abstract

Abstract Assessing investment climate of Republic of Uzbekistan in perspective of South Korea FARRUKH ABDUSALAMOV International Area Studies Graduate School of International Studies Seoul National University

The economic theory and practice show that foreign investments when they are combined with the correct set of investment policy, promote, in general, economic development of host countries. It occurs not only by injection in economy of the supplementary capital, and also in the form of a transfer of modern technologies and innovations, positive impact on the competition in the domestic market, improvements of human resources and development of international trade.

The medium-term purposes of development of economy of Uzbekistan provide preserving rates of economic growth at the level of at least 8% annually. The solution of this task is impossible without essential growth in volumes of investments into national economy, including foreign investments.

In the Republic of Uzbekistan where in recent years the share of foreign investments and the credits in the total amount of investments into fixed capital varies within 20 - 30%, special significance is attached to attraction of foreign investments for further development of economy. As it was noted in a speech of the first President of the republic Islam Karimov on the celebrations devoted to the celebration of the 23 anniversary of Independence of the country, "for the purpose of development of our country by so high rates, its upgrade and updating, implementation of large-scale reforms in economy more than 180 billion dollars of capital investments were mastered, from them over 60 billion dollars are foreign investments. Certainly, it is possible to give a set of examples of the fact that due to these investments ample opportunities, first of all for radical structural restructurings in economy, constructions of the most modern, high-technology entities, productions of products, competitive in the world market, the high-quality growth of capacity of Uzbekistan in general were created".

This thesis is devoted to analyzing an investment climate of Uzbekistan in perspective of South Korea by comparing it to Korean main outward investments source country - Vietnamese investment climate. This research will cover the reasons of the extremely high unequal distribution of FDI among these countries and, according to the study, will give relevant recommendations for Uzbekistan for further development of the country economy for attracting larger amounts of FDI.

Keywords: Foreign direct investment, Competitiveness of nations, Investment climate, Uzbekistan, Vietnam, Porters diamond model, Student Number: 2015-25113