THE INTERPLAY BETWEEN FOREIGN DIRECT INVESTMENT AND EXTERNAL TRADE: DYNAMICS AND PROSPECTS FOR THE UZBEKISTAN ECONOMY

This article examines the symbiotic relationship between Foreign Direct Investment (FDI) and external trade performance in the context of Uzbekistan’s ongoing economic liberalization. Despite significant reforms since 2017, the country faces challenges in diversifying export baskets and attracting high-value-added capital. This study utilizes a quantitative approach to analyze the correlation between FDI inflows and export growth over the last decade. The findings suggest that FDI in Uzbekistan has primarily acted as a catalyst for import-substitution industrialization rather than export-oriented manufacturing. The research argues that to sustain long-term growth, Uzbekistan must transition toward an integrated trade-investment policy that incentivizes technological transfer and regional supply chain integration. The article concludes with strategic recommendations for policymakers to enhance the country’s competitiveness in global value chains.