CORPORATE GOVERNANCE QUALITY, FOREIGN DIRECT INVESTMENT, AND ECONOMIC GROWTH: A PANEL ECONOMETRIC ANALYSIS OF CENTRAL ASIAN COUNTRIES (2003–2024)
DOI:
https://doi.org/10.5281/zenodo.20513411Ключевые слова:
governance, foreign direct investment, BTI Index, economic growth, reforms, Central AsiaАннотация
This study examines the relationship between governance quality, foreign direct investment (FDI), and economic
growth in Central Asian countries during the period 2003–2024. The research employs the Bertelsmann Transformation
Index (BTI) and a random-effects GLS panel model to analyze the direct and indirect effects of governance reforms on
economic growth through foreign direct investment. The findings indicate that improvements in governance quality are
positively associated with FDI inflows; however, this relationship remains statistically limited, suggesting that ongoing
institutional reforms are still developing their full potential to enhance the region’s investment attractiveness. Similarly,
foreign direct investment has a positive but moderate influence on economic growth, reflecting the gradual development
of spillover effects.
The results imply that Central Asia is undergoing an active stage of institutional transformation and governance
modernization, while foreign direct investment remains largely concentrated in resource-based sectors. To transform
governance improvements into sustainable investment-driven growth, it is essential to strengthen institutional trust,
diversify investment flows, and improve public sector efficiency
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