Keywords
finance
economic growth
risk management
investment
liquidity
How to Cite
Abstract
While a centralized system is wasteful, a market system allocates resources efficiently. Research citing market failures and information gaps as the main culprits highlights the important influence of institutional and political factors on resource allocation. These include formal channels such as order and rules, as well as informal channels such as political connections and personal relationships. Often, exclusive and personal political affiliations play a special role in the decline in profits from formal funding distribution. The article examines the influence of interpersonal contacts on the uneven distribution of official funds in Uzbekistan.
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