The Key Determinants of Industrialization in Uzbekistan

Abstract

This work investigates key determinants of industrialization in Uzbekistan since 1991, considering primary political, institutional, and economic conditions in various circumstances. This study aims to find out the factors subject to advancement and hindrance. My work defines the bridge between influencing factors and the development of industrialization in Uzbekistan. Uzbekistan witnessed dramatic changes since the election of a new leader – Sh. Mirziyoyev, as the second President of the Republic of Uzbekistan (late 2016), and the reforms carried out in changing economic policy and strategy orientation and foreign economic activities, became one of the most dynamic in the post-Soviet era of the country. The key findings of this work are as follows: (i) policy change and strategy orientation, including the transition from a defensive self-reliance approach-autarky to a gradual liberal approach and comparative advantage following strategies are central to industrialization; (ii) introduction of export-oriented industrial policy is of paramount importance to the industrialization process; (iii) human capital advances the industrialization; (iv) physical capital boosts industrialization; (v) specific trade and investment-oriented policies are intrinsic to effective long-term industrial policy; (vi) elimination of the most noticeable obstacles to industrialization as insecure property rights, inefficient logistic chains, and monopolistic production is essential on the way to the industrialization.