Publication Details
Abstract
Investment by firms underpins employment outcomes and the efficient functioning of the labour market is crucial to regional development. Uzbekistan: Optimal policy through labour market mobility for investment-employment in Kashkadarya These flows are certainly having an impact on employment in particular through substantial investments in the region, notably in infrastructure, energy and industrial but the employment–migration nexus has been little studied in a region where demographic growth is high. Much has been said in the past about investment being an important determinant of employment, but less so about the particular regional differences especially with respect to the interplay between the construction and service sectors and the fact that employment does not rise immediately with investment. The purpose of this study is to assess the relationship between investment and employment in the Kashkadarya region using an econometric approach, by defining quantities and regional assessments of investment in the structure of collateral and investment and availing them with employment dynamics. Applying OLS regression, we identify a statistically significant positive link between investment and employments. This may be due to the relatively weak, at times negative, relationship between wage growth and employment, compared with the very significant effect of investment in infrastructure and high-value industry. It presents a region-specific econometric model, including the tests for autocorrelation, multicollinearity, and heteroskedasticity, and can be used for regional labour market patching. The results indicate that investment policies directing industries towards the high-tech and value-added sides and updating cash flow-generating infrastructures are imperative in order to maximize its utility in the labor market. Policymakers must implement a balanced investment sector approach and improve the labour absorption capacity of high-tech projects.