Abstract:

The widespread economic growth literature shows that foreign investments have a positive impact on economic growth. Direct foreign investments have a positive impact with the possibility of financing economic growth, improving the balance of payments, bringing technological innovations and knowledge to the country. Therefore, developing countries are trying to draw foreign capital investments directly to their own countries. The aim of this study is to examine the effects of foreign capital investments directly into the countries of Central Asia on the economic growth of these countries. For this purpose, the Panel ARDL test was carried out with data from 1995-2017 years. According to the results of the study, a 1% increase in foreign direct investments in Central Asian countries increases GDP by 0.9%. In addition, exports and industrial variables have a positive impact on economic growth.