Tashkent, Uzbekistan (UzDaily.com) -- IPMI experts assessed the competitive advantages of goods and services produced in the regions of Uzbekistan and having the greatest attractiveness in the market of Kazakhstan.

The study used the system of RCA (Revealed comparative advantage) and HHI (Herfindahl–Hirschman index), widely used in the regional economy. The sample was made on 59 items of goods and services exported from the regions of Uzbekistan to Kazakhstan in January-November 2022.

Kazakhstan, being the leading trading partner, ranks 4th in the export of Uzbekistan among the countries of the world after Russia, China and Turkey.

The following 11 goods and services are identified as the most attractive for the Kazakh market (83.0% of the total volume of exported Uzbek products to Kazakhstan):

I group of goods - with a relative diversification of exports includes vegetables and fruits, textile products, clothing, building materials (the concentration coefficient is 0.077-0.281; Bukhara, Kashkadarya, Jizzakh, Namangan, Syrdarya, Tashkent, Ferghana and Khorezm regions have competitive advantages - RCA ≥ 1.0). This is mainly due to the efficient use of local resources, the relatively low capital intensity of production and the entrepreneurial activity of the population.

group II, with a moderate level of export concentration, includes non-ferrous metals, plastics, cast iron and steel (the concentration coefficient is 0.580-0.718). The main factors in this case were resource provision (hydrocarbon raw materials - the Republic of Karakalpakstan and Kashkadarya region; iron ore - Tashkent and Samarkand regions; non-ferrous metal ore - Navoi and Tashkent regions), capital intensity of production and the predominant role of large business;

group III included electrical appliances (Tashkent), cars (Andijan and Samarkand regions), power generating equipment (Andijan region), services (Tashkent). Those. this group includes goods with a high technological redistribution, but with non-diversified exports (concentration coefficient above 0.8). The concentration of exports of these goods is associated with a complex technological process, the need for highly qualified personnel, investments and innovations.

In general, the prospects for finding additional opportunities to strengthen the positions of the regions of Uzbekistan in the market of Kazakhstan are associated with the diversification of exports of goods and services through:

- expanding the potential advantages of regional exports of cars, power generating equipment, electrical appliances (Andijan, Samarkand, Jizzakh, Khorezm, Jizzakh and Syrdarya regions);

- transition to the export of high-quality textile products and clothing with high added value (Jizzakh, Kashkadarya, Samarkand, Syrdarya, Ferghana and Surkhandarya regions);

- increasing the production of high-tech goods (organic chemicals - Bukhara and Tashkent regions; pharmaceutical products - Samarkand and

Andijan region; measuring devices - the Republic of Karakalpakstan, Andijan, Bukhara and Syrdarya regions) as drivers for increasing the export potential of the territories.