Regional Industrial Clusters and Economic Growth: Evidence from Kashkadarya Region

This paper analyzes the effect of regional industrial cluster on economic development in a transition economy, which is empirically supported by data from Kashkadarya region of Uzbekistan. The study investigates how cluster-based industrialization affects regional economic performance, enterprises’ survival and competitiveness through creation of production linkages (inter-firm relationships), innovation spillovers (spread of new ideas) and resource complementarity. Based on data compiled from the regional statistics and enterprise-level indicators, the paper uses descriptive analysis and econometric methods to explore cluster development in relation to important economic performance measures. The results suggest that areas with more established local industrial clusters experience higher growth, increase industrial productivity and showcase higher resistance to economic shocks. The findings indicate that cluster-based management factors could be an effective policy tool for facilitation of regional economic development in resource-rich and diversify industrial regions. The paper provides empirical evidence from a lesser-studied transition economy and presents policy-relevant implications for regional industrial development strategies into the literature.