Ijodkor o‘qituvchi jurnali

IJODKOR O‘QITUVCHI JURNALI
 
5 YANVAR / 2022 YIL / 14 – SON 
87 
FDI, a small part is characterized by international factor actions, the management of 
ownership of a business enterprise in one country by an entity located in another country. 
Foreign direct investment differs from investment in a foreign portfolio, passive investment in 
securities of another state, for example, on state shares and bonds, the element of 
"management." A According to the Financial Times, "The Standard Control Descriptions use 
a 10 percent boundary of internationally agreed voting stocks, but also entrust control over 
technology, management, and even important information." 
Foreign direct investment also plays an important role at the microeconomic level. Local 
companies expanding into foreign markets can make significant growth. In addition, the 
impact on several countries increases diversification. On the other hand, foreign companies 
operating in emerging markets can be a target for foreign direct investment and this will give 
investors an opportunity. 
Foreign direct investment can be used by international investors at both the 
macroeconomic and microeconomic levels. Sustainable and growing countries of foreign 
direct investment are more preferable, companies investing abroad often benefit from high 
growth rates. 
Foreign direct investment, despite its overall efficiency in stimulating growth, has many 
drawbacks. At a primitive level, this can create problems for the country's domestic labor 
markets and, in the long term, drain capital. Micro-level investments have several risks that 
need to be carefully considered. 
FDI is the acquisition of a long-term interest in the country, thus, they are carried out in 
production capacity, new technologies, which distinguishes them from portfolio investments 
subject to short-term speculation. FDI is addressed in many areas of economics: international 
economics, theory of the firm, macroeconomics, marketing, etc. This work was devoted to the 
aspect of modeling the influence of direct foreign investment for economic growth in 
developing countries. 
FDI has a positive impact on long-term growth in the host country and, therefore, to 
some extent contribute to the leveling of the economies of the investing country and host. 
However, differences in wealth levels may persist due to cutting consumption in order to 
service foreign debt. 
CONCLUSION 
When analyzing the impact of FDI on economic growth, it is necessary to take into 
account the level of development of the country. In general, economic growth in developing 
countries is higher than in developed thanks to savings on internal investments when imitating 
goods, as well as due to the fact that the contribution of FDI, proportional to their 
performance in production in economic growth is higher than the contribution of domestic 
investment. 
After the domestic economy has reached a steady state, the degree the impact of foreign 
direct investment on economic growth decreases with an increase in their volume. In addition, 
this effect is enhanced by the negative influence the country's openness to economic growth. 
The contribution of FDI and PVI to economic growth has different dynamics and in many 
ways is determined by the country's ability to effectively adapt investments and transfer 
positive externalities. Positive externalities determine the gradual an increase in the 

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