INVESTMENT DYNAMICS, EFFICIENCY, AND FINANCIAL STABILITY: EVIDENCE FROM UZBEKISTAN

Nizamiddin Khamraevich Khaydarov
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Nizamiddin Khamraevich Khaydarov: Tashkent international university of financial management and technologies. Tashket, Uzbekistan.

UTMS Journal of Economics, 2026, vol. 17, issue 1, 46-51

Abstract: This study examines the role of regulatory frameworks and financial sources in shaping investment dynamics in Uzbekistan, a transitioning economy pursuing ambitious growth targets. Using descriptive and comparative analysis of official statistical data from 2017 to 2023, the paper investigates the volume, structure, and efficiency of fixed capital investments. The findings reveal an average annual investment growth of 14.5%, with the share of investments in GDP stabilizing at approximately 33% by 2023. A key result is the shift toward market-based financing: corporate funds, direct foreign investments, and unsecured foreign loans constituted 71% of total investment financing, while state budget contributions fell to 6%. However, the study identifies persistent inefficiencies in sectoral and regional allocation, including underinvestment in strategic sectors (e.g., fish farming, poultry) and declining investment flows in 12 districts. The paper concludes that improving investment efficiency-measured through employment multipliers and value-added generation-is as critical as expanding investment volume for long-term financial stability

Keywords: Investment efficiency; Fixed capital; Foreign direct investment; Market economy; Financial stability (search for similar items in EconPapers)
JEL-codes: E22 F21 O16 O47 (search for similar items in EconPapers)
Date: 2026
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