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Transaction sector of Uzbekistan as a factor in increasing economy efficiency

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Duration: January 2014 - February 2015

Transaction sector of Uzbekistan as a factor in increasing economy efficiency

The increase in transaction costs in the economy of the republic is influenced by such factors as (1) the incompleteness of the existing powers of property rights and lack of their specification (2) unreliable protection of contractual rights and obligations, (3) market of administrative prohibitions and permits (4) imperfection and instability law, (5) low level of trust, culture of contracts and business ethics. These factors are interrelated, their action creates a certain imbalance in the structure of the transaction sector, characterized by a high level of transaction costs.

As a result, there is a decrease of intensity of economic exchange, especially in the private sector. There is a risk of a situation development when "transaction service" absorbs enormous resources, and the return on a successful transaction remains at a lower level compared to the cost. This is the main factor driving the development of the "shadow" economy. Today, the government of the republic is taking some measures to optimize transaction costs and the development of transaction industries in the whole. However, the current situation requires a deeper and more comprehensive approach to the problem solving, which is based on the structural issues of institutional change.

The research examines the transaction sector of Uzbekistan's economy as one of the key elements to ensure the effective development of the modern post-industrial society. There is an analysis of the sector and functionality of the segment, as well as its main parameters. The results indicate that the development of the transaction sector of Uzbekistan is extensive. Regarding the efficiency and quality of performance indicators in this sphere, it should be noted that the level of inefficient transaction costs still remains several times higher than in developed economies.

Expert discussions on the blog:

"Appearing of transaction costs"

Useful links
Policy Brief_Transaction sector of Uzbekistan: does it help deepen structural reforms and improve competitiveness of the economy?_2014_Rus