ASSESSING THE ECONOMIC EFFICIENCY OF GOVERNMENT INVESTMENT INCENTIVE MECHANISMS IN ENSURING ECONOMIC DEVELOPMENT: EVIDENCE FROM UZBEKISTAN
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https://doi.org/10.5281/zenodo.18472225##article.subject##:
investment incentives; economic efficiency; government policy; investment climate; economic development; Uzbekistan.##article.abstract##
Improving the investment climate through effective government incentive mechanisms is a key condition for
sustainable economic development in transition economies. This study assesses the economic efficiency of government
investment incentive mechanisms in Uzbekistan using empirical evidence from 2019–2024. Economic efficiency is
evaluated through investment outcomes, financing structure, and sectoral allocation of fixed capital investment. The
results show that Uzbekistan has achieved sustained growth in fixed capital investment and foreign direct investment,
with a clear predominance of non-centralized and private funding sources. This suggests that government incentives have
operated primarily as catalytic mechanisms rather than as direct budgetary instruments. At the same time, the analysis
reveals sectoral concentration and efficiency constraints associated with certain fiscal incentive instruments. The study
concludes that while government investment incentives in Uzbekistan have been economically effective overall, their
long-term efficiency can be enhanced through improved targeting, diversification, and performance-based evaluation.
The findings contribute to the literature on investment policy in transition economies and provide policy-relevant insights
for improving incentive design
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