Research on the Impact of Inflation, Foreign Direct Investment (Fdi) and Trade Openness on Economic Growth Based on Ols (Evidence from Uzbekistan, Russian Federation and South Korea)

This study investigates the impact of Foreign Direct Investment (FDI), inflation, and trade openness on Uzbekistan's economic growth by employing an Ordinary Least Squares (OLS) regression model. The analysis reveals that both FDI and trade openness significantly enhance economic growth, while inflation adversely affects it. Comparative assessments with the Russian Federation and South Korea corroborate these findings, indicating that increased FDI and trade openness bolster economic performance across diverse economies, whereas elevated inflation hampers growth. These results underscore the necessity for Uzbekistan to implement policies that attract FDI, promote trade liberalization, and maintain price stability to foster sustainable economic development. The regression analysis carried out results passed the 5% significance test. While inflation has a significant negative impact on economic growth in all three countries, FDI and trade openness have a significant positive impact on economic growth in these countries. For every 1% increase in inflation, the decrease in GDP in Uzbekistan, Russian Federation and South Korea is 0.416 %, 0.304% and 0.395% respectively. For every 1% increase in trade openness, the increase in GDP in Uzbekistan, Russian Federation and South Korea is 0.88%, 1.11% and 0.72% respectively, while GDP in Uzbekistan, Russian Federation and South Korea grows by 0.599%, 0.412% and 0.981% correspondingly for every 1% increase in FDI. Thus, FDI and trade openness are necessary and effective for these countries while high inflation is undesirable.