the inflow of FDI into these sectors

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There are at least two different motivations that countries that host FDI. One is the lack of domestic savings to develop their own resource base or to serve the domestic market.

This motivation is usually characteristic of poor countries with low savings rates. The other motivation is the lack of technology, marketing linkages, and knowledge needed to set up production and marketing systems henan cell phone number list/ for investment projects. The above discussion of FDI trends and patterns in Central Asia shows that all of these countries attract investors primarily because of their natural resources: oil, gas, and metals. As noted above, projects related to the extraction and, to a lesser extent, processing of natural resources account for more than 50% of all foreign investment in the region.

In turn, is associated with the rapid growth of world commodity prices; according to the International Monetary Fund, energy and metal prices more than tripled between 2003 and 2012. The labor force does not appear to attract much investment; Labor-intensive industries (e.g. textiles) are relatively small recipients of FDI, and existing investments in Turkmenistan and Uzbekistan appear to be linked more to the availability of cotton than to cheap labor.

One important reason for this may be that labor in the region is not actually cheap. The sharp appreciation of regional currencies between 2000 and 2012 and the large-scale migration of workers from Uzbekistan, Tajikistan, and Kyrgyzstan to the Russian Federation, Kazakhstan, and some other countries have kept wages in the region relatively high, making investment in labor-intensive industries unfeasible.