The effect of Foreign Direct Investment in development of automobile sector in developing countries in the example of JV “MAN Uzbekistan”

The rationale for the actuality of the topic of the dissertation is that investments are the drivers of the economy that provide the movement forward – this is the axiom of any economic theory. Each state should make efforts to attract both domestic and foreign investors primarily to the sphere of material production.
For this purpose, a certain investment policy is developed and implemented, and an appropriate investment climate is formed. Economic reforms, consistently implemented in independent Uzbekistan and in many developing countries, presuppose the achievement of rational sectoral, reproductive and territorial proportions, the development of integrational processes, economic growth and others.
Developing the entire set of these sectors is closely connected with the implementation of the relevant investment policy, the formation of an effective system of regulations and investment processes support.
In the years of independence, Uzbekistan became one of the fast growing countries among the former USSR countries, that attracted an attention of many developed states. Beginning from the 1992 foreign investments started flowing into the economy of Uzbekistan, many joint-ventures came into the market. Particularly, by the initiative of the government was created “UzAutoSanoat” LLC that focuses on making deals with foreign automobile producing companies and localizing their production in Uzbekistan, and is considered a single of its kind in the Central Asia region. Today three vehicle producing joint-ventures are the results of the work of “UzAutoSanoat” LLC and are operating in Uzbekistan, these are: SamAuto LLC, General Motors Uzbekistan LLC, MAN Uzbekistan LLC.
Purpose of writing this dissertation is to show how joint ventures effect on development of a whole automobile sector in developing countries in the example of Uzbekistan, making analysis of functioning of JV “MAN AUTO UZBEKISTAN LLC”, as well as finding the ways to improve the attraction of foreign investments in the industry of the country.
It’s important to mark out, that main attention in this dissertation work will be given to the question of creating automobile JVs with foreign partners, cooperation of which helps to realize main purposes and tasks of joint ventures.
Hypothesis of research is that the developed offers and practical recommendations of this dissertation work allows to maintain of how attracting foreign investments to the automobile industry helps to improve this sector.