ASSESSING THE ECONOMIC EFFICIENCY OF GOVERNMENT INVESTMENT INCENTIVE MECHANISMS IN ENSURING ECONOMIC DEVELOPMENT: EVIDENCE FROM UZBEKISTAN

Improving the investment climate through effective government incentive mechanisms is a key condition forsustainable economic development in transition economies. This study assesses the economic efficiency of governmentinvestment incentive mechanisms in Uzbekistan using empirical evidence from 2019–2024. Economic efficiency isevaluated through investment outcomes, financing structure, and sectoral allocation of fixed capital investment. Theresults show that Uzbekistan has achieved sustained growth in fixed capital investment and foreign direct investment,with a clear predominance of non-centralized and private funding sources. This suggests that government incentives haveoperated primarily as catalytic mechanisms rather than as direct budgetary instruments. At the same time, the analysisreveals sectoral concentration and efficiency constraints associated with certain fiscal incentive instruments. The studyconcludes that while government investment incentives in Uzbekistan have been economically effective overall, theirlong-term efficiency can be enhanced through improved targeting, diversification, and performance-based evaluation.The findings contribute to the literature on investment policy in transition economies and provide policy-relevant insightsfor improving incentive design