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  • Structural Changes in the Economy of Uzbekistan: Achievements, Problems, Perspectives

Structural Changes in the Economy of Uzbekistan: Achievements, Problems, Perspectives

Donor: CAREC

Research areas: Social Transformation

Duration: December 2009 - February 2011

This research is a component of the fourth dimension of the Research Program 2009-2001 of CAREC Research Institute “Structural Change in the CAREC region”.

In order to determine the prioritized sectors with maximum multiplier effect on development of the economy in general, a general equilibrium model will be built based on the input output table. Then, based on an analysis of the unfolding situation, the main factors hindering development of these sectors will be determined. Higher value-added of the products is either the effect of high capital intensity of manufacturing or intensive use of highly qualified workforce or a combination of these two factors.

Consequently, facilitating savings and investments, and improving the skills of the workforce are important prerequisites for the creation of sustainable comparative advantages of the country in manufacturing goods with high value-added. Addressing these problems in the context of Uzbekistan is intricately linked to the trade reforms and achieving greater regional integration, financial and educational reforms, and improvement of government regulation instruments. Development of specific recommendations to address these problems and work towards implementing them will lead to a greater availability of capital and a more qualified workforce, and to the emergence of comparative advantages for the country in manufacturing goods with high value-added in the long-run.