Regional Industrial Development and Growth Pole Formation: Key Factors for Sustainable Economic Expansion

  • Authors

    • Avazbek Sodikov Department of State and Corporate Strategies, National University of Uzbekistan named after Mirzo Ulugbek, Tashkent, Republic of Uzbekistan
    • Nilufar Komilova Department of Ecology, National University of Uzbekistan named after Mirzo Ulugbek, Tashkent, Republic of Uzbekistan
    • Yusupjon Akhmadaliyev Department of Geography, Fergana State University, Fergana, Republic of Uzbekistan
    • Rukhsora Khudayberganova Department of Geography, Urgench State University, Urgench, Republic of Uzbekistan
    • Khidoyatkhon Abdinazarova Department of Geography, Kokand State Pedagogical Institute, Fergana, Republic of Uzbekistan
    https://doi.org/10.14419/j73vdn86

    Received date: April 25, 2025

    Accepted date: July 10, 2025

    Published date: August 28, 2025

  • Gross Domestic Product; Industrial Zones; Investments; Diversification; Investment
  • Abstract

    The study aimed to identify key factors and mechanisms that contribute to the successful development of regional industry and the formation of economic growth centres. The study uses analysis of official statistics, review of economic and geographical theories, spatial analysis of production concentration, systematization of regulatory and legal documents, as well as assessment of the dynamics of the industrial structure of the regions. The main theoretical models, including Perroux’s growth pole theory, Porter’s regional clusters, and Vernon’s product life cycle models, which explain the mechanisms of industrial production concentration in certain regions, were analysed in the study. Based on the data for Uzbekistan, a detailed analysis of the factors influencing the development of industry in the regions of the country, such as infrastructure, innovation, and economic diversification, was conducted. The study examined changes in the structure of industrial production, territorial differentiation, and its relationship to industrialisation policies, including modernisation and technological upgrading. The study determined that most of the industrial production in Uzbekistan is concentrated in three economic regions – Tashkent, Zarafshan, and Fergana. The study also analysed the consequences of concentrating industrial capacities around the growth poles, which contribute to economic integration and development of adjacent territories. The analysis demonstrated that measures to develop small businesses and create technopolises and industrial clusters are substantial in stimulating employment and improving living standards. The study also described the results of the industrial diversification policy, such as the decline in the share of light industry and the growth of heavy engineering, chemical, and gas industries. Based on the analysis, the study concluded that a comprehensive approach to regional development planning is needed, including consideration of natural and economic conditions, creation of modern infrastructure, and implementation of innovative projects.

  • References

    1. Ahmed Z, Asghar MM, Malik MN & Nawaz K (2020) Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China. Resources Policy 67, 101677. https://doi.org/10.1016/j.resourpol.2020.101677
    2. Aliyev S, Babayev F, Galandarova U, Gafarli G & Balajayeva T (2023) Economic security of regions: a prerequisite for diversifying the Azerbaijan economy. Journal of Eastern European and Central Asian Research 10(5), 827–840. https://doi.org/10.15549/jeecar.v10i5.1480
    3. Anguelov K & Kavaldzhieva K (2021) Methodology for determining the socio-economic factors in the performance of Cost-Benefit Analysis for the production of electricity from biomass. In: 2021 17th Conference on Electrical Machines, Drives and Power Systems, ELMA 2021 – Proceed-ings (Lazarov V & Aprahamian B eds.), Institute of Electrical and Electronics Engineers, Sofia. https://doi.org/10.1109/ELMA52514.2021.9502978
    4. Asheim BT (2019) Smart specialisation, innovation policy and regional innovation systems: What about new path development in less innovative regions? Innovation: European Journal of Social Science Research 32(1), 8-25. https://doi.org/10.1080/13511610.2018.1491001
    5. Barbieri E, Di Tommaso MR, Pollio C & Rubini L (2020) Getting the specialization right. Industrialization in Southern China in a sustainable de-velopment perspective. World Development 126, 104701. https://doi.org/10.1016/j.worlddev.2019.104701
    6. Bergman EM & Feser EJ (2020) Industrial and regional clusters: Concepts and comparative applications. Regional Research Institute, West Virginia University, Morgantown.
    7. Berisha B & Rexhepi B (2022) Factors That Determine the Success of Manufacturing Firms: Empirical Evidence from Kosovo. Quality - Access to Success 23(191), 194–202. https://doi.org/10.47750/QAS/23.191.23
    8. Bobir o’g’li BS (2023) Economic transformation in the new Uzbekistan: Opportunities, challenges, and progress. Education Science and Innovative Ideas in the World 21(7), 84-93.
    9. Buzhymska K, Tsaruk I, Biriuchenko S, Pashchenko O & Svitlyshyn I (2024) Impact of diversification on strategic business management. Scientific Bulletin of Mukachevo State University. Series “Economics” 11(3), 34-46. https://doi.org/10.52566/msu-econ3.2024.34
    10. Caldari K (2024) François Perroux on plans coordination and planning. European Journal of the History of Economic Thought 31(2), 257-276. https://doi.org/10.1080/09672567.2024.2329048
    11. Charbit C (2020) From “de jure” to “de facto” decentralised public policies: The multi-level governance approach. British Journal of Politics and International Relations 22(4), 809-819. https://doi.org/10.1177/1369148120937624
    12. Damyanov D, Kavaldjieva K, Vlahova B & Lazarov V (2021) Innovation Process and Degree of Innovation and Innovation Activity. In: Interna-tional Conference on High Technology for Sustainable Development, HiTech 2021 - Proceedings. Institute of Electrical and Electronics Engineers, Sofia. https://doi.org/10.1109/HiTech53072.2021.9614233
    13. Decree of the President of the Republic of Uzbekistan No. DP-158 (2023) On the Strategy “Uzbekistan – 2030”. Available at: https://lex.uz/docs/6600404
    14. Faggian A, Modrego F & McCann P (2019) Human capital and regional development. In: Handbook of Regional Growth and Development Theo-ries (Capello R & Nijkamp P eds.), Edward Elgar Publishing, Cheltenham, pp. 149-171. https://doi.org/10.4337/9781788970020.00015
    15. Fedorenko T (2024) Tools for financing local economic development of local communities. Economic Forum 14(1), 62-74. https://doi.org/10.62763/cb/1.2024.62
    16. Gherghina ȘC, Botezatu MA, Hosszu A & Simionescu LN (2020) Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability 12(1), 347.
    17. Herus O (2024) Peculiarities of investment support for industries in the current environment. Economics, Entrepreneurship, Management 11(1), 57-66. https://doi.org/10.56318/eem2024.01.057
    18. Hlushko O (2024) Identification of the enterprise diversification stages. Economic Forum 14(3), 73-84. https://doi.org/10.62763/ef/3.2024.73
    19. Inkeles A (2022) Industrialization, modernization and the quality of life. In: Ecology, World Resources and the Quality of Social Life (D’Antonio WV, Sasaki M & Yonebayashi Y eds.), Routledge, New York, pp. 51-79. https://doi.org/10.4324/9780429334115
    20. Ismayilov V, Gafarov N & Valiyeva S (2024) Impact of Investment on Labour Productivity in Azerbaijan's Chemical and Petrochemical Industry. Qubahan Academic Journal 4(2), 198–213. https://doi.org/10.48161/qaj.v4n2a211
    21. Ismayilov VI, Almasov NN, Musayev NS & Samedova AQ (2021) Model of the Influence of Internal Production Conditions on the Efficiency of Enterprises. Estudios de Economia Aplicada 39(6). https://doi.org/10.25115/eea.v39i6.5103
    22. Ivaldi S, Scaratti G & Fregnan E (2022) Dwelling within the fourth industrial revolution: Organizational learning for new competences, processes and work cultures. Journal of Workplace Learning 34(1), 1-26. https://doi.org/10.1108/JWL-07-2020-0127
    23. Karaduman C (2022) The effects of economic globalization and productivity on environmental quality: Evidence from newly industrialized coun-tries. Environmental Science and Pollution Research 29(1), 639-652. https://doi.org/10.1007/s11356-021-15717-1
    24. Khaydarov M, Juraev R, Khaydarov I, Babajanov H, Abdulboqiyev F & Alimardonov O (2020) Causes and Consequences of the division of the territory of Uzbekistan into economic regions (On the example of 20–70 of the XX century). European Journal of Molecular & Clinical Medicine 7(7), 7037-7042.
    25. Koldovskyi A (2024) Architectural frameworks for financial transformation in Ukraine. Development Management 23(2), 25–37. https://doi.org/10.57111/devt/2.2024.25
    26. Kubiczek J (2020) Corporate Bond Market in Poland—Prospects for Development. Journal of Risk and Financial Management 13(12), 306. https://doi.org/10.3390/jrfm13120306
    27. Lee JW (2022) Strategic approaches to free economic zones for the digital economy: Lessons from a comparative study. Journal of Asian Finance Economics and Business 9(2), 15-27. https://doi.org/10.13106/jafeb.2022.vol9.no2.0015
    28. Levchenko I, Dmytriiev I, Dmytriieva O, Shevchenko I & Britchenko I (2021) Methodological fundamentals of support of scientific and educa-tional institutions through targeted capital investments. Problems and Prospects of Development of the Road Transport Complex: Financing, Man-agement, Innovation, Quality, Safety - Integrated Approach 1, 2–16. https://doi.org/10.15587/978-617-7319-45-9.CH1
    29. Llazo E, Ryspaeva A, Kubiczek J, Mehdiyev V & Ketners K (2024) Trends and Prospects of Financial System Development in the Context of Dig-italization. Theoretical and Practical Research in the Economic Fields 15(4), 783–797. https://doi.org/10.14505/tpref.v15.4(32).01
    30. Lu Y, Wang J & Zhu L (2019) Place-based policies, creation, and agglomeration economies: Evidence from China’s economic zone program. Amer-ican Economic Journal: Economic Policy 11(3), 325-360. https://doi.org/10.1257/pol.20160272
    31. Madiyarova ES, Madiyarova KZ, Abdiev BA & Ezhebekov MA (2015) Green economy: its optimization and modeling. Mediterranean Journal of Social Sciences 6(4), 186–192. https://doi.org/10.5901/mjss.2015.v6n4p186
    32. Makhazhanova U, Omurtayeva A, Kerimkhulle S, Tokhmetov A, Adalbek A & Taberkhan R (2024) Assessment of Investment Attractiveness of Small Enterprises in Agriculture Based on Fuzzy Logic. Lecture Notes in Networks and Systems 935 LNNS, 411–419. https://link.springer.com/chapter/10.1007/978-3-031-54820-8_34
    33. Malyarets LM, Babenko VO, Nazarenko OV & Ryzhikova NI (2019) The modeling of multi-criteria assessment activity in enterprise management. International Journal of Supply Chain Management 8(4), 997-1004. http://repository.hneu.edu.ua/handle/123456789/22265
    34. Mamasydykov AA, Abdiev MZ, Attokurova GM & Abrakhmanov OE (2019) Development of export potential of processing companies on the cluster basis with the help of quality management. International Journal for Quality Research 13(4), 931-946. https://doi.org/10.24874/IJQR13.04-13
    35. Martins H (2023) Spatially unbalanced growth and regional economic inequalities in Brazil: A long-run perspective. Journal of Economic Issues 57(3), 876-899. https://doi.org/10.1080/00213624.2023.2238497
    36. McCann P & Van Oort F (2019) Theories of agglomeration and regional economic growth: A historical review. In: Handbook of Regional Growth and Development Theories (Capello R & Nijkamp P eds.), Edward Elgar Publishing, Cheltenham, pp. 6-23. https://doi.org/10.4337/9781788970020.00007
    37. Nizaev T (1996) Uzbekistan: A car that will become a people’s car. Mirror of the Week. Available at: https://zn.ua/allnews/uzbekistan_avtomobil,_kotoryy_stanet_narodnym.html
    38. Osei F, Mensah R, Kankam-Kwarteng C & Owusu JD (2024) The impact of innovation dimension and marketing intelligence on the performance of small and medium enterprises in Ghana. Economics, Entrepreneurship, Management 11(2), 8–18. https://doi.org/10.56318/eem2024.02.008
    39. Peng Y & Tao C (2022) Can digital transformation promote enterprise performance? – From the perspective of public policy and innovation. Jour-nal of Innovation & Knowledge 7(3), 100198. https://doi.org/10.1016/j.jik.2022.100198
    40. Podra O & Petryshyn N (2023) Theoretical and methodological aspects of analysing the foreign economic activity of enterprises. Economics, En-trepreneurship, Management 10(1), 51-58. https://doi.org/10.56318/eem2023.01.051
    41. Prieto‐Sandoval V, Jaca C, Santos J, Baumgartner RJ & Ormazabal M (2019) Key strategies, resources, and capabilities for implementing circular economy in industrial small and medium enterprises. Corporate Social Responsibility and Environmental Management 26(6), 1473-1484. https://doi.org/10.1002/csr.1761
    42. Prokhorova V, Kravchenko O, Shkurenko O, Babichev A & Polivantsev A (2025) Study of priority directions of economic recovery of Ukraine based on scenario modelling. Economics of Development 24(1), 26–34. https://doi.org/10.63341/econ/1.2025.26
    43. Proost S & Thisse JF (2019) What can be learned from spatial economics? Journal of Economic Literature 57(3), 575-643. https://doi.org/10.1257/jel.20181414
    44. Prus P & Sikora M (2021) The impact of transport infrastructure on the sustainable development of the region – Case study. Agriculture 11(4), 279. https://doi.org/10.3390/agriculture11040279
    45. Raimondi PP (2019) Uzbekistan. In: Central Asia oil and gas industry – The external powers’ energy interests in Kazakhstan, Turkmenistan and Uzbekistan, Eni Enrico Mattei Foundation, Venice, pp. 62-74.
    46. Rasiah R & Yap XS (2019) How much of Raymond Vernon’s product cycle thesis is still relevant today: Evidence from the integrated circuits in-dustry. International Journal of Technological Learning, Innovation and Development 11(1), 56-77. https://doi.org/10.1504/IJTLID.2019.097435
    47. Rauhut D & Humer A (2020) EU Cohesion Policy and spatial economic growth: Trajectories in economic thought. European Planning Studies 28(11), 2116-2133. https://doi.org/10.1080/09654313.2019.1709416
    48. Rayevnyeva O, Stryzhychenko K, Shtal T, Brovko O & Koinash M (2025) Analysis of fluctuations in the national economy: Models and develop-ment scenarios. Economics of Development 24(1), 8–25. https://doi.org/10.63341/econ/1.2025.08
    49. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 233 (2015) On the Program for Further Development of Industrial Poten-tial, Creation of Modern Service and Eco-Tourism Facilities in the Syrdarya Region for 2015–2017. Available at: https://www.lex.uz/ru/docs/2718289?ONDATE=17.08.2015
    50. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 617 (2019) On Measures to Accelerate the Implementation of Investment Projects and Industrial Development in the Fergana Region. Available at: https://www.lex.uz/docs/4434249?ONDATE=23.07.2019
    51. Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. PF-4707 (2015) On the Program for the Development of Industrial Po-tential of the Surkhandarya Region for 2015–2017. Available at: https://lex.uz/acts/2661060
    52. Resolution of the President of the Republic of Uzbekistan No. PP-1442 (2010) On Priority Areas of Industrial Development of the Republic of Uzbekistan for 2011–2015. Available at: https://lex.uz/docs/1712436
    53. Resolution of the President of the Republic of Uzbekistan No. PP-1856 (2012) On the Program for the Development of the Industrial Potential of the Khorezm Region for 2013–2015. Available at: https://nrm.uz/contentf?doc=283019_postanovlenie_prezidenta_respubliki_uzbekistan_ot_22_11_2012_g_n_pp-1856_o_programme_razvitiya_promyshlennogo_potenciala_horezmskoy_oblasti_na_2013-2015_gody
    54. Rexha B, Osmani F & Nimani A (2024) Importance of proper management of public finances in economic development. Scientific Bulletin of Mukachevo State University. Series “Economics” 11(2), 65-78. https://doi.org/10.52566/msu-econ2.2024.65
    55. Sgroi F (2021) Territorial development models: A new strategic vision to analyze the relationship between the environment, public goods and geo-graphical indications. Science of the Total Environment 787, 147585. https://doi.org/10.1016/j.scitotenv.2021.147585
    56. Shahini E & Shahini E (2024) Economic efficiency of co-operatives and their impact on socio-economic development of rural areas. Development Management 23(4), 23–33. https://doi.org/10.57111/devt/4.2024.23
    57. Shkvarchuk L & Slav'yuk R (2024) Financial behaviour in a cultural context: Cross-countries analysis of savings and consumption. Economics, En-trepreneurship, Management 11(2), 55–64. https://doi.org/10.56318/eem2024.02.055
    58. Shtal TV, Buriak MM, Amirbekuly Y, Ukubassova GS, Kaskin TT & Toiboldinova ZG (2018) Methods of analysis of the external environment of business activities. Espacios 39(12), 22. https://www.revistaespacios.com/a18v39n12/a18v39n12p22.pdf
    59. Stachová K, Papula J, Stacho Z & Kohnová L (2019) External partnerships in employee education and development as the key to facing industry 4.0 challenges. Sustainability 11(2), 345. https://doi.org/10.3390/su11020345
    60. Statistical Agency under the President of the Republic of Uzbekistan (2025) Available at: https://stat.uz/en/official-statistics/national-accounts
    61. Tleubayev A, Kerimkhulle S, Tleuzhanova M, Uchkampirova A, Bulakbay Z, Mugauina R, Tazhibayeva Z, Adalbek A, Iskakov Y & Toleubay D (2024) Econometric Analysis of the Sustainability and Development of an Alternative Strategy to Gross Value Added in Kazakhstan’s Agricultural Sector. Econometrics 12(4), 29. https://doi.org/10.3390/econometrics12040029
    62. United Nations Economic Commission for Europe (2022) Innovation for Sustainable Development: Uzbekistan Overview. Available at: https://unece.org/sites/default/files/2023-05/2207339_R_ECE_CECI_31_WEB.pdf
    63. United Nations General Assembly (2011) A/65/838. Letter from the Permanent Representative of Uzbekistan to the United Nations addressed to the Secretary-General. Available at: https://digitallibrary.un.org/record/703789/files/A_65_838-EN.pdf
    64. Usman M & Balsalobre-Lorente D (2022) Environmental concern in the era of industrialization: Can financial development, renewable energy and natural resources alleviate some load? Energy Policy 162, 112780. https://doi.org/10.1016/j.enpol.2022.112780
    65. Vlados C & Chatzinikolaou D (2020) From growth poles and clusters to business ecosystems dynamics: The ILDI counterproposal. International Journal of World Policy and Development Studies 6(7), 115-126. https://doi.org/10.32861/ijwpds.67.115.126
    66. Wang C & Meng Q (2020) Research on the sustainable synergetic development of Chinese urban economies in the context of a study of industrial agglomeration. Sustainability 12(3), 1122. https://doi.org/10.3390/su12031122
    67. Yan S, Zou L, Growe A & Wang Q (2024) Propositions for place-based policies in making regional innovation systems. Evidence from six high-tech industrial development zones in China. Cities 154, 105322. https://doi.org/10.1016/j.cities.2024.105322
    68. Zheng L (2021) Job creation or job relocation? Identifying the impact of China’s special economic zones on local employment and industrial ag-glomeration. China Economic Review 69, 101651. https://doi.org/10.1016/j.chieco.2021.101651
  • Downloads

  • How to Cite

    Sodikov, A., Komilova, N., Akhmadaliyev, Y., Khudayberganova, R., & Abdinazarova, K. (2025). Regional Industrial Development and Growth Pole Formation: Key Factors for Sustainable Economic Expansion. International Journal of Accounting and Economics Studies, 12(SI-2), 10-20. https://doi.org/10.14419/j73vdn86