Impact of Digitization Potential of Chemical Industry Enterprises on Economic Efficiency

The chemical industry is an important element of the world economy, which has a direct impact on the macroeconomic stability and growing industrial base. The possible opportunities in terms of efficiencies and competitiveness have raised great attention among scholars as more enterprises across industries integrate digital technologies. In this context, the chemical industry of emerging economies (Uzbekistan, etc.) faces the challenges of fully attaining the potential benefits of digital transformation. This switching has been facilitated by the “Uzkimyosanoat” JSC which has a substantial network of chemical production businesses in Uzbekistan. Though the worldwide literature proves the beneficial impact of digital technologies on the efficiency of industrial processes, there is little empirical evidence available in regard to the particular effect the technologies have on the Uzbek chemical industry. This is research paper on relationship between adoption of digital technology and performance of the economy in the chemical industry of Uzbekistan in regard to level of production and net profit. The goal is to find out key predeterminants of digitalization, as well as to assess its impact on the efficiency of a business. Using econometric models, the analysis shows that investments in digital technologies, internet coverage, and labor productivity have a great correlation with increased production volumes and the overall net profit, thus proving the importance of digital transformation as the determinant of economic growth. Therefore, the paper can add to the body of literature with its empirical findings on the topic of digitalization in the chemical industry in the Uzbekistan context where the country has been developing through the processes of economic reform. Its results provide the policymakers and the leaders of the industry in Uzbekistan with viable information that can guide in the creation of strategies that will enhance sustainable growth in digitalization and the enhancement of economic performance of the chemical industry.