Implementation of Irish Foreign Direct Investment Policy in Uzbekistan

International Journal of Research and Scientific Innovation (IJRSI) | Volume VII, Issue IV, April 2020 | ISSN 2321–2705

Implementation of Irish Foreign Direct Investment Policy in Uzbekistan

Shahboz Babaev
Anhui Finance and Trade Vocational College, China

Abstract— It is well known that governments in developing countries such as Uzbekistan are actively looking at ways to improve their FDI policy. Developing nations often look toward other developed countries FDI policy based on its positive effects in the country’s economy. In many ways in this globalised world, if we look around the world and see what policies are successful, there are not many effective policies that could be implemented. However, it is acknowledged within the literature that the main factors influencing FDI policy in Uzbekistan are unfortunately negative. The main aim of this study is to look for possibilities to implement the Irish FDI policy in Uzbekistan. In the process, the study sought to investigate the main factors influencing FDI policy in Uzbekistan. The study also sought to discover the reasons why Uzbekistan should implement the Irish FDI policy. Data was collected using qualitative methods. The research was conducted through the use of semi-structured interviews of two existing government bodies, the IDA Ireland and Uzinfoinvest, and experts and senior managers in Uzbekistan and Ireland. This research concludes that restrictions on currency conversion, uncertainty of the rule of law, corruption and bureaucracy have been preventing multinationals from investing in Uzbekistan. There also appears to be a lack of a good track record of existing long-term companies.

Keywords— Foreign Direct Investment, Uzbekistan, Ireland.

I. LITERATURE REVIEW

The literature review covers the period between protectionism era and the Celtic tiger in Ireland and since independence to the end of 2000s in Uzbekistan. The author found a lack of research has been done since 2008 on Uzbekistan FDI, therefore comparisons with the Irish FDI in this period are problematic.

Ireland

There was a progressive evolution from the 1930s to 2008 which shaped Ireland into a developed economy and Ireland has faced three different stages since becoming one of the richest countries. Barry & Bradley (1997) describes Irish economic development over three phases. Which are; the failure of protectionism, economic structural changes and industrialisation process.

Uzbekistan

Uzbekistan was one of the former Union of Soviet Socialist Republics (USSR) and had no history as an independent nation before 1991. Uzbekistan, the most populated country among Central Asian countries, was administered politically and economically from Moscow during the Soviet Union era.

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