Dependence and level of influence of the services sector on the economy of uzbekistan

DEPENDENCE AND LEVEL OF INFLUENCE OF THE SERVICES SECTOR ON THE ECONOMY OF UZBEKISTAN
Tokhirov Rustam Solijonovich
Senior lecturer and doctoral student of the "Digital Technologies and Mathematics" department of Kokand University
Numonov Fayzulla Nurmuhammadjon ugli
3rd year student of the Economics Department of Kokand University
Abstract
The article discusses the features, problems, advantages and disadvantages of the development of the service industry in Uzbekistan, and in general, the role of the industry today. The main goal of the article is to fill this gap, and for this we will consider the share of the services sector in the GDP. In this, we will analyze the data from 2017 to 2022, and its peculiarity is that this research is focused on the general network of the service sector. We used correlation-regression econometric analyzes to determine the general relationship between variables. The result of the econometric analysis showed that there are strong correlations between the main factor and the factors affecting it. The results of the pairwise correlation coefficient in the study have a very strong correlation. Therefore, this study is focused on determining the general impact of changes in the service sector on the growth of the country's economy. Since the service sector plays an important and decisive role in the growth of the economy of Uzbekistan, the role of services in the modern economy, the reasons for the growth of services in Uzbekistan and changes in this sector are analyzed in the study. The main problems faced by service enterprises are carefully considered and ways to solve them are proposed.
Keywords: Gross domestic product, Service sector, Correlation coefficient, Regression model, Fisher criterion, Elasticity coefficient, Approximation, Darbin Watson, Income, Cost, Enterprise.
Introduction
The service sector is the largest and fastest growing sector in the world economy, accounting for the largest share of total output and employment in most developed countries. The share of the service sector in the GDP is 47 percent in low-income countries, 53 percent in middle-income countries, and 73 percent in high-income countries. In 2022, the share of services in Uzbekistan's GDP will be 41.5%.
Today, Uzbekistan is a successfully developing country and is on the way to becoming a developed country in its own way. Uzbekistan is demonstrating effective management for successful development and economic development. Year after year, fundamental reforms are being implemented in every field. Changes are being made especially in the service sector. Today, the service sector is the most profitable industry. Along with this, special attention is being paid to the further development of this direction in our country, to all-round support of entrepreneurs operating in the service sector. Especially in the following years, financial institutions play an important role in providing loans to entrepreneurs who want to start business activities in this direction.
We know that currently the service sector is one of the most promising and rapidly developing sectors of the economy, which covers many different types of activities. Almost all organizations provide services at one level or another, so this topic is relevant today.
The service sector plays an important role in the country's economic growth, creating cheap jobs, ensuring employment and reducing poverty. According to the calculations of the International Labor Organization, a 1% increase in the service sector will reduce poverty by 1.5% on average. In our country, 41.5% of the gross domestic product and 60% of the total enterprises belong to the service sector. More than 50 percent of the total employed population in the republic is employed in the services sector: wholesale and retail trade (10 percent), education (13 percent), transport (6 percent), public administration (5.5 percent), health and social services (7 percent) has been operating in the fields.
In particular, it was noted that in 2021, 29,000 projects worth 18 trillion soums were implemented in the service sector, and the service sector grew by 20%. At the same time, there are still many unexploited opportunities in this area, and their implementation will provide an opportunity to reduce unemployment, increase the income of the population, and sharply reduce poverty.
Therefore, in 2022, important legal, financial and organizational decisions were made to ensure the growth of the service sector in Uzbekistan by at least 50%. Also, the head of our state, Shavkat Mirziyoyev, introduced the following decision in order to further support business entities in this direction, to encourage their ideas and initiatives:
"To increase the share of the services sector in the economy of our country, to fully utilize the existing opportunities in the field of services, to expand the types of services and to improve the quality of services, to advance the solution of the problematic issues that are waiting for their solution."
In particular, 1.5 thousand people can be provided with work due to the reconstruction of 16 sanatoriums in the Yangikurgan district of Namangan region alone. It is possible to provide employment to about 8,000 citizens by establishing tourist bases using light constructions in the Bostonliq district of the Tashkent region. Thousands of jobs can be created due to the development of mineral water industry in Khanabad city of Andijan region within the framework of health tourism.
In addition, the high income of the population in cities and large districts increases the demand for education, medicine, art, tourism, housing and transport services. For example, it is no secret that most public schools in cities are overworked and there is a shortage of kindergarten places.
For this purpose, expanding the scope of private education services will create great opportunities and relief for the population. In order to develop these types of services, taking into account the needs of the population, 100 suitable plots of land are allocated to entrepreneurs through an auction, with the condition of building a school and a kindergarten.
The President also emphasized the need to develop high-income services in the largest cities of our country, Tashkent, Samarkand and Namangan, on the basis of a separate program. As a clear example of this, we can say that in 2022, the head of our state created 750,000 jobs in the service sector in the cities of Tashkent, Namangan and Samarkand, and allocated 500 million dollars for the implementation of projects in the service sector across the country.
In short, private entrepreneurship, especially entities in the service sector, is one of the main factors that ensure social and economic stability in all aspects of society's development. The development of this sector leads to the enrichment of the country's population, economic development and an increase in state budget revenues.
The purpose of this article is to analyze the importance of the service sector in the economy and to better understand the service sector. The study also examines the relative performance of the service sector and its contribution to economic growth, trade and employment.