Abstract
Service sector enterprises in the cities of Uzbekistan are developing more slowly compared to similar enterprises in the city of Tashkent. In particular, Tashkent city accounts for more than 1/5 of the value added to the GDP of the service sector. The level of concentration is especially high in the sphere of trade, accommodation and catering services, in 2022 the share of the capital in this sector exceeded 35 percent. 16% of the total urban population of the country is permanently registered in Tashkent, and these figures indicate the need to increase the level of urbanization in the regions due to structural transformations. With this in mind, this study analyzes the causal relationship between the level of urbanization and structural changes implemented in Uzbekistan. The results show that structural changes are serving to increase the level of urbanization, but an increase in the level of urbanization is not causing changes in the structure of the economy.
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