Publication Details
Abstract
Structural change has been identified as one of the key determinants of long-term economic growth and competitiveness in developing countries (McMillan & Rodrik 2011). Nevertheless, contemporary evaluation frameworks based on very narrow quantitative metrics tend to neglect the multidimensionality of innovation, digitalization, and sustainability. This research fills this gap in methodology by developing a more elaborate framework for measuring the effects of the industrial structure transformation on the economic growth, incorporating Uzbekistan as a concrete example. The comparative work is both systematic and econometric in nature, using inter-industry regression models linking the value-added (MVA), to factors such as trade openness, industrial policy, foreign direct investment and technological development. Recent research suggests that technological innovation and human capital investments (74% and 58% of industrial investments, respectively) are key determinants of structural transformation. In addition, a growing portion of heavy industry and non-ferrous metallurgy is also noted, confirming the course of moving towards forming an export orientation and technology-intensive industrial base in the country. Their findings underscore the importance of a more inclusive institutional arrangement integrating macroeconomic stability, growth, and structural amechanism. This research offers more granular information on industrial policy by incorporating innovation capacity and environmental sustainability into industrial policy evaluation, providing a more comprehensive framework to inform industrial policy for policymakers. The suggested multidimensional model provides more explanatory power than existing methods and real-world applications for improving sustainable inclusive and tech-led economic growth.