Do foreign direct investments and bank credits affect employment in Uzbekistan?
Purpose – The paper investigates the relationship between credit to the economy, foreign direct investment (FDI) and the unemployment rate in Uzbekistan using macroeconomic time series over 2004–2019. Design/methodology/approach – The study estimates the relationship by applying a vector autoregress...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2021-11-01
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| Series: | Journal of Economics and Development |
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| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JED-06-2021-0082/full/pdf?title=do-foreign-direct-investments-and-bank-credits-affect-employment-in-uzbekistan |
| _version_ | 1811261518755397632 |
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| author | Alisher Suyunov |
| author_facet | Alisher Suyunov |
| author_sort | Alisher Suyunov |
| collection | DOAJ |
| description | Purpose – The paper investigates the relationship between credit to the economy, foreign direct investment (FDI) and the unemployment rate in Uzbekistan using macroeconomic time series over 2004–2019. Design/methodology/approach – The study estimates the relationship by applying a vector autoregression model, which is considered a “workhorse” model for policy analysis to capture dynamic relationships in economic time series. Findings – The results suggest both growth in credit to the economy and FDI Granger cause a change in the unemployment rate. The authors found 1% increase in bank credits to the economy growth decreases the unemployment rate by 0.096 pp. over eight years. On the contrary, 1% positive shock to FDI growth increases the unemployment rate by 0.0036% in the context of Uzbekistan. Practical implications – Uzbekistan should improve FDI absorptive capacity, particularly human capital and financial market development, through growth-enhancing structural reforms in the financial sector to stimulate economic growth and employment. The attracted FDI funds should focus on productive and economic sectors with high labor-absorptive capacity, such as financial and professional services, healthcare and biomedicine, creative industries and media, software sector. Originality/value – The study contributes to the empirical literature on employment effects of FDIs and credit to the economy of Uzbekistan. |
| first_indexed | 2024-04-12T19:06:07Z |
| format | Article |
| id | doaj.art-b82fba3b411a4bec931356a355dd891b |
| institution | Directory Open Access Journal |
| issn | 1859-0020 2632-5330 |
| language | English |
| last_indexed | 2024-04-12T19:06:07Z |
| publishDate | 2021-11-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Economics and Development |
| spelling | doaj.art-b82fba3b411a4bec931356a355dd891b2022-12-22T03:20:01ZengEmerald PublishingJournal of Economics and Development1859-00202632-53302021-11-012429811110.1108/JED-06-2021-0082675937Do foreign direct investments and bank credits affect employment in Uzbekistan?Alisher Suyunov0Westminster International University in Tashkent, Tashkent, UzbekistanPurpose – The paper investigates the relationship between credit to the economy, foreign direct investment (FDI) and the unemployment rate in Uzbekistan using macroeconomic time series over 2004–2019. Design/methodology/approach – The study estimates the relationship by applying a vector autoregression model, which is considered a “workhorse” model for policy analysis to capture dynamic relationships in economic time series. Findings – The results suggest both growth in credit to the economy and FDI Granger cause a change in the unemployment rate. The authors found 1% increase in bank credits to the economy growth decreases the unemployment rate by 0.096 pp. over eight years. On the contrary, 1% positive shock to FDI growth increases the unemployment rate by 0.0036% in the context of Uzbekistan. Practical implications – Uzbekistan should improve FDI absorptive capacity, particularly human capital and financial market development, through growth-enhancing structural reforms in the financial sector to stimulate economic growth and employment. The attracted FDI funds should focus on productive and economic sectors with high labor-absorptive capacity, such as financial and professional services, healthcare and biomedicine, creative industries and media, software sector. Originality/value – The study contributes to the empirical literature on employment effects of FDIs and credit to the economy of Uzbekistan.https://www.emerald.com/insight/content/doi/10.1108/JED-06-2021-0082/full/pdf?title=do-foreign-direct-investments-and-bank-credits-affect-employment-in-uzbekistanunemploymentcreditsforeign direct investmentabsorptive capacityuzbekistan |
| spellingShingle | Alisher Suyunov Do foreign direct investments and bank credits affect employment in Uzbekistan? Journal of Economics and Development unemployment credits foreign direct investment absorptive capacity uzbekistan |
| title | Do foreign direct investments and bank credits affect employment in Uzbekistan? |
| title_full | Do foreign direct investments and bank credits affect employment in Uzbekistan? |
| title_fullStr | Do foreign direct investments and bank credits affect employment in Uzbekistan? |
| title_full_unstemmed | Do foreign direct investments and bank credits affect employment in Uzbekistan? |
| title_short | Do foreign direct investments and bank credits affect employment in Uzbekistan? |
| title_sort | do foreign direct investments and bank credits affect employment in uzbekistan |
| topic | unemployment credits foreign direct investment absorptive capacity uzbekistan |
| url | https://www.emerald.com/insight/content/doi/10.1108/JED-06-2021-0082/full/pdf?title=do-foreign-direct-investments-and-bank-credits-affect-employment-in-uzbekistan |
| work_keys_str_mv | AT alishersuyunov doforeigndirectinvestmentsandbankcreditsaffectemploymentinuzbekistan |