Open AccessFOREIGN INVESTMENTS AND FISCAL STIMULATION IN UZBEKISTAN
Author(s) -
Nargiza Yakubova
Publication year - 2015
Publication title -
cbu international conference proceedings ...
Language(s) - English
Resource type - Journals
eISSN - 1805-997X
pISSN - 1805-9961
DOI - 10.12955/cbup.v3.607
Subject(s) - economics , foreign direct investment , incentive , monetary economics , capital outflow , stimulus (psychology) , international economics , capital flight , exchange rate , language change , tax revenue , fiscal policy , foreign exchange reserves , economic policy , development economics , capital formation , macroeconomics , market economy , human capital , financial capital , psychology , art , literature , psychotherapist
This article analyzes the trends in foreign capital inflows into selected CIS countries, using a documented analysis. The study revealed that despite improved macroeconomic stability and economic growth capital inflow in CIS countries is modest , reflecting a weak overall investment climate in the region. The study results show that private capital inflows into these countries consist mainly of direct investments, and concentrate in the few countries with big oil reserves. Lack of protection for property rights, with threats from corruption, crime, and excessive regulation, was the significant investment impediment cited most frequently in the research. Despite Uzbekistan shows strong growth comparing a weak performance in the broader Europe and Central Asia region, the level of efficiency of using the incentives still remaining low. According the results of the study unconditional and irrevocable tax and customs exemptions are the main reasons for the low efficiency of the incentives. The paper subsequently suggests that fiscal stimulus are only marginally efficient in the absence of effective monetary, exchange-rate, and industrial policies.