AZERBAIJAN AND UZBEKISTAN: COMPARATIVE ANALYSIS OF REGIONAL ECONOMIC DEVELOPMENT AND INDUSTRIAL CLUSTERS
Keywords:
regional development, industrial clusters, Azerbaijan, Uzbekistan, economic diversification, regional competitiveness, industrial policy, value chains, spatial economics, post-Soviet economies.Abstract
This article presents a comparative analysis of regional economic development and industrial cluster formation in Azerbaijan and Uzbekistan, two post-Soviet economies with distinct development trajectories. The study examines how differences in resource endowment, institutional frameworks, and industrial policies have shaped the spatial distribution of economic activity and the performance of regional clusters. Azerbaijan’s development model, largely driven by the oil and gas sector, has produced strong growth in the capital region but has limited diversification and weak inter-firm linkages in non-energy sectors. In contrast, Uzbekistan has pursued a more diversified and cluster-oriented strategy, particularly in agriculture, textiles, and manufacturing, which has contributed to more balanced regional development and stronger value chain integration. By comparing these two cases, the article identifies key structural and policy factors that influence the success of industrial clusters and regional competitiveness. The findings highlight the importance of coordinated industrial policy, institutional quality, and human capital development in fostering sustainable and inclusive regional economic growth.
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