A Comparison of Foreign Direct Investments in Eurosian Countries to World Trend in the Period of 1995-2011

Abstract

The world which rapidly globalizes and where the boundaries diminish day by day, the foreign direct investments affect many diverse macroeconomic variables, specifically economic growth and unemployment. Most current studies support that there exists a strong causality relationship between foreign direct investments and economic growth.On the other hand, there exists a weaker positive causality relationship between economic growth and foreign direct investments. Moreover, it is an undeniable fact that the economic growth leads to a decline in unemployment. This study aims to compare the foreign direct investment trends of seven Eurasian countries (Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Turkmenistan and Uzbekistan) in the period of 1995 and 2011. The results are compared to both the world foreign direct investment trend and the other Central Asian countries.