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Are distortions good for development? Structural transformations and cotton in Uzbekistan

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  • Lorena Lombardozzi

    (Department of Economics, SOAS University of London, UK)

Abstract

Agriculture is at the origin of all economic activities and thus obtains a notable position in growth theory. The contribution of primary sector to long-term economic development has given space to asymmetrical positions. In the current context of globalized markets and downsized states, Uzbekistan is incontestably an exceptional case-study, applying distortive measures to its economy, and to agricultural sector in particular, to actively shape its comparative advantages. With reference to the cotton sector taxation in Uzbekistan, this analysis proposes to shed light on the implications of the main theoretical arguments around distortions. It will investigate the ìcircular cumulative and interactive processî produced and how it is being a driver of structural transformation, to exploit economies of scale and transfer capital investments for heavy industry, concluding that distortion can actually be instrumental for development.

Suggested Citation

  • Lorena Lombardozzi, 2016. "Are distortions good for development? Structural transformations and cotton in Uzbekistan," Working Papers 193, Department of Economics, SOAS University of London, UK.
    • Handle: RePEc:soa:wpaper:193
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    File URL: https://www.soas.ac.uk/sites/default/files/2022-10/economics-wp193.pdf
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    More about this item

    Keywords

    cotton; cash-crops; structural transformation; Uzbekistan;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General

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