The Automotive Industry of Uzbekistan and the “Flying Geese” Paradigm

The author studies the role of the industry in the economic development of the Republic of Uzbekistan. They note that the development of automotive industry has made an important contribution not only to the country’s economic development, but also to the exports diversification. They emphasize that the automotive industry also plays an important role in creating jobs, which determined the choice of its location in the most densely populated district of Uzbekistan. The article discusses international and domestic experiences in developing the automotive industry. It reveals the modern trends production expansion of the “UzAutoMotors” JSC, as well as the export policy and its effectiveness in the neighboring countries of Central Asia. Authors analyze foreign direct investment (FDI) theories, which explain the motivation and conditions for movement of the international entrepreneurial capital. A special attention is paid to conditions that encourage transition from exporting goods to create their own production abroad. In this regard, experience of Southeast Asian countries, mechanism of “flying geese” paradigm by K. Akamatsu have been studied, a comparative analysis in opening own automobile production in Central Asia and Azerbaijan were carried out. General patterns, differences and features are revealed, recommendations have been given. The urgent need to improve the management system under new conditions has been stressed with a special focus on using the foreign experience based on FDI theories, in particular the “flying geese” paradigm. Particular attention is paid to investment outflow and joint ventures creation in the neighboring countries, while forming production chains and promoting regional integration. Statistical and informational materials on production activities of the Uzbek automaker, the export of cars in 2016-2022, organization work to open the production of cars in the region have been presented within this research work. Proposals have been given to increase competitiveness and investment attractiveness of the “UzAutoMotors” JSC.