Theoretical and Institutional-Economic Foundations for Enhancing the Competitiveness of the Services Sector

This article examines the theoretical and institutional-economic foundations for enhancing the competitiveness of the services sector. The study argues that service competitiveness is not limited to price or cost advantages; it is determined by productivity, innovation capacity, service quality, digital readiness, human capital, market openness, and the reliability of institutions. Based on comparative analysis, systems thinking and synthesis of recent international statistics, the article proposes an integrated framework for assessing service-sector competitiveness at macro-, meso- and microeconomic levels. Particular attention is paid to Uzbekistan, where the service sector has become a major source of gross value added, employment, innovation diffusion and export diversification. The article identifies institutional bottlenecks, including regulatory fragmentation, unequal market access, limited digital skills, insufficient quality certification and weak commercialization of knowledge-intensive services. Practical recommendations are proposed for strengthening competition policy, improving digital infrastructure, developing professional standards, expanding services exports and introducing evidence-based institutional reforms.