TOʻGʻRIDAN-TOʻGʻRI INVESTITSIYALARNING MEHNAT UNUMDORLIGIGA TAʼSIRINI EKONOMETRIK MODELLASHTIRISH

Affiliation
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Abstract

The article econometrically modelled the impact of foreign direct investment on labour productivity using panel data for the 14 regions of Uzbekistan over 2010-2023. Building on a Cobb-Douglas production function augmented with human capital, the author estimated a two-way fixed effects model in log-log form, applied Fisher-ADF panel unit root tests together with Mundlak, Pesaran and Wooldridge diagnostics, and relied on Driscoll-Kraay standard errors. The panel covered 196 region-year observations. The elasticity of domestically financed investment in the fixed effects model was 0.164. Over the whole period the average investment elasticity was statistically insignificant, whereas for 2017-2023 it equalled 0.037 and was highly significant. The interaction coefficient between investment and human capital, equal to 0.042, confirmed that the effect was stronger in regions with higher absorptive capacity. On this basis the author substantiated proposals for aligning investment policy with the educational potential of the regions.

Keywords

foreign direct investment, labour productivity, human capital, absorptive capacity, panel data, fixed effects, Cobb-Douglas function, regional economy


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