The Role of Diaspora Networks in Driving Trade and Investment in Uzbekistan’s Emerging Economy

Abstract

The Uzbek diaspora plays an important role in Uzbekistan’s economic development by easing internationaltrade, promoting Diaspora Direct Investment (DDI), and transferring knowledge and skills. This study examineshow diaspora networks in Russia, Kazakhstan, South Korea, and Türkiye influence trade and investmentflows, highlighting their impact on Uzbekistan’s economy. The findings reveal that while remittances andinvestments contribute significantly to national development, challenges such as informal labor markets,regulatory inefficiencies, and weak engagement frameworks continue to limit their full potential. Addressingthese barriers through targeted tax incentives, dual citizenship reforms, and structured diaspora engagementpolicies could significantly enhance economic contributions. This study emphasizes the strategic importanceof diaspora networks and calls for proactive policy measures to optimize their role, positioning theUzbek diaspora as a key driver of sustainable economic growth