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Investment Policy, Small Business Development, and Financial Stability in Uzbekistan

Authors

  • Abduvosit Amonboyev

    Head of the HR Department of the Andijan Branch of Kokand University, Uzbekistan.
    Author

Keywords:

Uzbekistan; investment policy; financial stability; foreign direct investment; macroprudential policy; public investment management.

Abstract

This paper examines how investment policy can contribute to financial stability in Uzbekistan, analyzing recent policy measures, macro-financial linkages, and the likely channels through which investment promotion and regulation affect systemic resilience. Employing a mixed-methods approach—policy-document analysis, secondary data synthesis, and comparative institutional evaluation—the study identifies strengths, vulnerabilities, and policy gaps that shape the interaction between investment flows and financial stability. Results highlight that while Uzbekistan’s investment liberalization and regulatory reforms have improved capital inflows and diversification, persistent governance, regulatory coordination, and macroprudential capacity gaps raise risks of sudden capital reversals, credit concentration, and asset-price pressures.

References

Asian Development Bank. (2022). Asian Development Outlook 2022: Financing a Green and Inclusive Recovery. Asian Development Bank.

International Monetary Fund. (2023). Republic of Uzbekistan: 2023 Article IV Consultation—Staff Report. International Monetary Fund.

Organisation for Economic Co-operation and Development. (2019). Investment Policy and the Role of the State: Lessons for Emerging Markets. OECD Publishing.

UN Conference on Trade and Development. (2024). World Investment Report 2024: Investing in Sustainable Recovery. UNCTAD.

World Bank. (2023). Uzbekistan Economic Update 2023: Macroeconomic Outlook and Structural Reforms. World Bank Group.

Arslanova, G., & Karimov, S. (2021). Public investment management and fiscal risk in Central Asia. Journal of Eurasian Economics, 12(3), 145–168.

Claessens, S., & Kose, M. A. (2018). Financial stability implications of rapid credit growth: Evidence from emerging markets. Journal of Financial Stability, 34, 13–27.

Ghosh, S., & Ostry, J. (2019). Managing capital flows for macroeconomic stability. IMF Working Paper No. 19/120.

Kose, M. A., & Terrones, M. (2015). How do investment and financial cycles interact? World Bank Policy Research Working Paper No. 7528.

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Published

2025-08-12

How to Cite

Amonboyev, A. (2025). Investment Policy, Small Business Development, and Financial Stability in Uzbekistan. TLEP – International Journal of Multidiscipline, 2(3), 74-81. https://tlepub.org/index.php/1/article/view/176