An Economic Model for Improving the Competitiveness of the Textile Industry in the Republic of Uzbekistan
Abstract
The textile industry is a strategic sector for Uzbekistan, contributing to exports, industrial diversification, and employment. However, increasing global competition, rapid technological shifts, and stricter sustainability standards demand new approaches to ensure competitiveness. Although Uzbekistan has transitioned from raw cotton exports to greater domestic processing and established textile clusters, the sector remains concentrated in low- and medium-value products, with limited branding, weak adoption of Industry 4.0 technologies, and underdeveloped sustainability practices. While existing studies analyze reforms, export growth, or investment attraction, few propose an integrated economic model that addresses structural weaknesses while leveraging opportunities such as value chain integration, human capital, and green modernization. This research aims to develop a comprehensive economic model to enhance the competitiveness of Uzbekistan’s textile industry, drawing on international best practices and local conditions. Findings show that despite progress, the sector still faces infrastructure bottlenecks, inadequate logistics, shortage of skilled specialists, and limited access to high-value markets. Clusters improve coordination but remain constrained by financing and SME participation. Digitalization and eco-certification adoption are lagging, reducing global market access. The study proposes a multidimensional model that combines technological modernization, cluster-based development, sustainability, human capital enhancement, and export diversification, tailored to Uzbekistan’s transitional economy. Effective implementation of this model will enable Uzbekistan to move up the global textile value chain, strengthen its competitiveness, attract foreign investment, and achieve broader socio-economic objectives including sustainable development, job creation, and global economic integration.
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