The Role of Foreign Investment in the Development of Special Economic Zones
Odilbekov Nozimbek Ortiqbek o‘g‘li
Tashkent International School of Ulugbek of the Ministry of Foreign Affairs Head of International Relations
Abstract
Special Economic Zones (SEZs) are designated areas with unique economic regulations aimed at attracting foreign direct investment (FDI) and promoting economic growth. Historically, SEZs have significantly contributed to the economic development of countries, with notable examples like Shenzhen in China demonstrating their potential.
Despite the successes of SEZs in various regions, there is a limited understanding of their long-term sustainability and the impact of local governance and infrastructure on their effectiveness, particularly in less developed regions.
This study utilizes a mixed-method approach, combining quantitative analysis of economic performance indicators (FDI inflows, employment rates, and export volumes) with qualitative insights from stakeholder interviews and case studies of SEZs in diverse economic contexts.
The analysis reveals a strong positive correlation between FDI and improvements in employment and exports within SEZs. Effective governance and high-quality infrastructure are identified as critical factors influencing SEZ success. SEZs in well-governed regions with advanced infrastructure show significantly better performance compared to those in less developed areas.
The study highlights that strategic governance and infrastructure development are essential for optimizing the benefits of SEZs. Regions that successfully attract and manage FDI through robust governance frameworks and infrastructure enhancements experience substantial economic growth.
Policymakers should focus on strengthening local governance and investing in infrastructure to maximize SEZ benefits. Future research should explore the long-term sustainability of SEZs and their impact on income inequality, providing deeper insights into their effectiveness and broader economic implications.
