Regional Economic Growth Through Investment Policy: A Case Study of Uzbekistan

Abstract

Investment policy plays a crucial role in driving economic growth, particularly in countries undergoing structural transformation. Uzbekistan has embarked on extensive economic reforms since 2017, emphasizing investment-led regional development. However, the benefits of growth have remained unevenly distributed across its diverse territories. While national investment performance has improved, limited empirical research exists on the effectiveness of regional investment policy in reducing territorial disparities. This study aims to evaluate the role of regional investment policies in enhancing socio-economic development across Uzbek regions by analyzing investment trends and their impact on key economic indicators. Using econometric and comparative analyses of data from 2015 to 2023, the study finds a strong positive relationship between investment per capita and regional GDP growth. Regions such as Tashkent and Samarkand, which received substantial investment and exhibit better infrastructure and human capital indices, experienced higher growth. Conversely, areas like Karakalpakstan showed lower performance due to institutional and human capital constraints. The study integrates macroeconomic data, regional case studies, and regression modeling to produce evidence-based recommendations, highlighting the need for region-specific investment incentives and improved governance frameworks. Effective investment policy requires tailored approaches aligned with local capacities and needs. Policymakers are urged to prioritize digitalization, transparency, and targeted support to underdeveloped regions to ensure balanced and inclusive growth, reinforcing the strategic importance of localized planning in Uzbekistan’s economic trajectory.