The Impact of Digital Technology on Attracting Foreign Direct Investment. (Foreign Experience and Its Application In Uzbekistan)

In the modern global economy, digital technologies have become a key driver of economic growth, significantly influencing the patterns of Foreign Direct Investment (FDI). Countries with strong digital infrastructures are more attractive to foreign investors, particularly in high-tech sectors such as e-commerce, fintech, and smart manufacturing. Uzbekistan, as an emerging economy, is undergoing significant digital transformation aimed at enhancing its economic competitiveness. Although reforms are still continuing in Uzbekistan, the inflows of FDI, especially in the technologies sector are rather low. The digital infrastructure will continue to serve as a limitation when it comes to attracting foreign investments especially when one compares it with other leading digital economies, such as Estonia, Singapore and South Korea. Although much has been published on the value of FDI in emerging markets, few studies have been done addressing a wide scope of how digital technologies directly affect FDI inflows, especially in the scenario of Uzbekistan. This paper is expected to determine how digital technology and FDI are related to each other in Uzbekistan, how other countries that were successful in utilizing digital infrastructure to drive FDI, and how macroeconomic factors contribute to investment. The result of the analysis indicates a positive correlation between ICT development and FDI and digital technology is a strong factor behind the inflows of FDI to Uzbekistan. Also, the growth of GDP and credit have a more significant effect on FDI, whereas inflation and interest rates have less strong effects. This research is relevant to the comprehension of how the changes in digital transformation can lead to the attraction of FDI in Uzbekistan with references to the peculiarities of appearing markets. The results indicate that a substantial investment in digital infrastructure and the development of a smart system of governance will play a key role in helping Uzbekistan to become more attractive in terms of investors and sustainable development of the economy.