Innovation science and technologiy Volume 2 Issue 5 (2026)
SMALL AND MEDIUM-SIZED ENTERPRISES (SME) AND DISTRICT-LEVEL PANEL DATA ANALYSIS IN THE CONTEXT OF REGIONAL ECONOMIC DEVELOPMENT IN UZBEKISTAN
Ismoilov, Elyorjon, Urinov, Bobur
Abstract
The study investigates the influence of small and medium-sized enterprises (SME) and humancapital in regional economic development in the Republic of Uzbekistan from 2011 to 2024. By utilizing KernelDensity Estimation and regression of Fixed Effects (FE), the analysis reveals conditional beta-convergence,but exposes “SME productivity paradox”. The high concentration of employment is negatively correlated witheconomic growth in all development tiers, reflecting the dominance of necessity entrepreneurship. Besides,regions revealed a deficit in “absorptive capacity”. To meet “Digital Uzbekistan – 2030 strategy”, there is anecessity of improving the quality of SMEs
human capital, absorptive capacity, small and medium-sized enterprises (SME), economic growth, peripheral, hub, GRP, Kernel Density Estimation, Fixed Effects, beta-convergence, entrepreneurship, regional, spatial, innovation, strategy, investment.
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