An Empirical Analysis on the Impact of Foreign Direct Investments on Economic Growth of Kyrgyzstan

• Published in: Journal of Global and Area Studies , 3(2) Vol. 3; no. 2; pp. 91 - 107
• Main Authors: Kadyrov, Kanabek, Chung, Hae Jo
• Format: Journal Article
• Language: English
• Published: 글로벌지역학연구소 30.11.2019
• Subjects: 지역학
• ISSN: 2586-0305; 2586-3797
• DOI: 10.31720/JGA.3.2.5

This study investigates the effects of foreign direct investment on the Kyrgyzstan economy from 1990 to 2017 using annual data with foreign direct investment inflows and per capita gross domestic product (GPC) as the main focus. Quantitative method of research using Auto-Regressive Distributed Lag (ARDL) model executed with E-views analytical software has been used in the analysis process. Correlation method was carried out to see the relationship between foreign direct investment and economic growth. The results in this study indicate that FDI has no impact on economic growth of Kyrgyzstan. The findings of this study suggest that the Kyrgyzstan government need to adopt policies that focus on enhancing the impact of foreign direct investment in the economy. Policies such as bilateral and multilateral trade agreements, channeling adequate resources in infrastructural development, curbing the negative climate of doing business for foreign companies which has been perpetuated by the Kyrgyz people and eradicating corruption and bureaucracy will help boost many sectors of the economy most especially the agricultural and mining industry. These policies will help influence and promote the impact of foreign direct investment in the country and hence invariably increase economic growth of Kyrgyzstan. KCI Citation Count: 0