The Automotive Industry of Uzbekistan and the “Flying Geese” Paradigm
DOI:
https://doi.org/10.31150/ajebm.v7i11.3014Keywords:
automotive production, export of capital, regional integration, “flying geese” paradigm.Abstract
The author studies the role of the industry in the economic development of the Republic of Uzbekistan. They note that the development of automotive industry has made an important contribution not only to the country’s economic development, but also to the exports diversification. They emphasize that the automotive industry also plays an important role in creating jobs, which determined the choice of its location in the most densely populated district of Uzbekistan. The article discusses international and domestic experiences in developing the automotive industry. It reveals the modern trends production expansion of the “UzAutoMotors” JSC, as well as the export policy and its effectiveness in the neighboring countries of Central Asia. Authors analyze foreign direct investment (FDI) theories, which explain the motivation and conditions for movement of the international entrepreneurial capital. A special attention is paid to conditions that encourage transition from exporting goods to create their own production abroad. In this regard, experience of Southeast Asian countries, mechanism of “flying geese” paradigm by K. Akamatsu have been studied, a comparative analysis in opening own automobile production in Central Asia and Azerbaijan were carried out. General patterns, differences and features are revealed, recommendations have been given. The urgent need to improve the management system under new conditions has been stressed with a special focus on using the foreign experience based on FDI theories, in particular the “flying geese” paradigm. Particular attention is paid to investment outflow and joint ventures creation in the neighboring countries, while forming production chains and promoting regional integration. Statistical and informational materials on production activities of the Uzbek automaker, the export of cars in 2016-2022, organization work to open the production of cars in the region have been presented within this research work. Proposals have been given to increase competitiveness and investment attractiveness of the “UzAutoMotors” JSC.
Downloads
References
Belova L.G. (2014). Regional cooperation as a factor in building the information society in the East Asian countries of the Asia-Pacific Region. Transport Business in Russia | №2 | 171-174
Chunchin Yun, (2003). International Production Networks and the Role of the .State: Lessons from East Asian Developmental Experience. The European Journal of Development Research, Vol. 15, No. 1, June, p. 170-193.
Decree of the President of the Republic of Uzbekistan (2017). "On the Strategy of Actions for the Further Development of the Republic of Uzbekistan" UP-4947. https://lex.uz/docs/3107042 Accessed 01 September 2023.
Dunning J., Narula R.. (1993 )Transpacific foreign direct investment and the investment development path: the record assessed", file:///C:/Users/user/Downloads/rm1993-024-1.pdf.
Dunning J., (1981). International Production and the Multinational Enterprise, George Allen@Unwin (Publishers) Ltd., London, UK, p.21-22.
.Ersikov V. (2022). What are the prospects for UzAuto Motors in the stock market of Uzbekistan? 8, December, https://uz.kursiv.media/2022-12-08/kakie-perspektivy-u-uzauto-motors-na-fondovom-rynke-uzbekistana/.
Flying geese paradigm. https://en.wikipedia.org/wiki/Flying_geese_paradigm
Gubaidulina F. (2017). The role of foreign direct investment in the strategy of catch-up development. Institutional environment and resources of regional economic development. XII International Conference "Russian regions in the focus of change", pp.160-169.
https||stat.uz.ru (2023).
https:||uzautomotors.uz (2022).
https:||uzkursivmedia obem exporta.uz (2022).
Kazakhstan began serial production of the Uzbek Ravon Nexia R3. (2017). 30.05.https://uz.sputniknews.ru/20170530/Kazakhstan-avtomobili-Ravon-5517173.html
Kasahara Sh. (2004). Japanese paradigm of "flying geese" and macroeconomic theory of direct investment. https://studme.org/77521/ekonomika/yaponskaya_paradigma_letyaschih_gusey_makroekonomicheskaya_teoriya_pryamyh_investitsiy.
Kasahara Sh. (2013). International institute of social studies (iss), Erasmus university. The Asian developmental state and the flying geese paradigm. United Nations Conference on Trade and Development, #213 vol. /p.12.
Nadirkhanov U.S. (2023). From Export of Capital to Export of Goods. Economy: Analysis and Forecasts. T: # 2(22), p.82-89.
Panfilova V. (2023). Mirzieev flies with "historical" call to Bishkek,. 26.01.https://centrasia.org/news.php?st=1674683340.
Salikov Y., Isaenko M. (2018). Conceptual approach to the development of the process of active import substitution. https://cyberleninka.ru/article/n/kontseptualnyy-podhod-k-razvitiyu-protsessa-aktivnogo-importozamescheniya.
The share of industry in the GDP of Uzbekistan increased to 26.7% (2023). 02.02.https://kapital.uz/dolya-promishlennosti-vvp/.
Taush A., Grinin L., Korotaev A. (2019). Kaname Akamatsu. Biography of the scientist and the theory of long cycles. https://www.socionauki.ru/upload/socionauki.ru/book/files/k_waves_7/010_Tausch_Akamatsu_(211-230).pdf
Terentyeva V. (2019). Model of "flying geese": the evolution of the role of foreign direct investment in the economic development of Vietnam. National research university, High School of Economics. https://www.hse.ru/edu/vkr/296309733.
In Tajikistan otkroetsya zavod UzAuto Motors (2021). 12.06. Asia-Plus https://asiaplustj.info/ru/news/tajikistan/economic/20210612/v-tadzhikistane-otkroetsya-zavod-uzauto-motors.
Uzbekistan's GDP for 2022 exceeded $80 billion (2023). https://dairynews.today/news/vvp-uzbekistana-za-2022-god-prevysil-80-milliardov.html
Uzbekistan: from cotton to the atom industry (2022). 09/26/.https://expert.ru/expert/2022/39/uzbekistan-ot-khlopka-k-atompromu/
UzAuto strengthens cooperation to Azerbaijan (2022). 27.08. https://kun.uz/news/2022/08/27/uzauto-ozarboyjon-bilan-hamkorlikni-kengaytirmoqda.
UzAuto Motors started production of Chevrolet in Kazakhstan (2020). https://www.gazeta.uz/ru/2020/03/28/chevrolet/
UzAuto industrial cooperation in Kazakhstan: vice president of GM International (2022). https://kun.uz/news/2022/08/29/qozogistondagi-uzauto-sanoat-kooperatsiyasi-gm-international-vitse-prezidentining-tashrifi-natijalari
UzAuto Motors automobile production is located in Tajikistan (2021). 11.06. http://uzdaily.ru/ru/post/61502.
UzAuto produces automobiles and commercial equipment in Kyrgyzstan (2023). https://kun.uz/news/2023/01/28/uzauto-qirgizistonda-avtomobil-va-tijorat-texnikalarini-ishlab-chiqaradi
Where will the most anticipated cars be produced and how many will be produced in 2022? (2021). 12/30/https://uz.sputniknews.ru/20211230/uzauto-motors-zapustila-sborku-5-modeley-chevrolet-v-azerbaydjane--video-22013118.html.
