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 international
trade, promoting Diaspora Direct Investment (DDI), and transferring knowledge and skills. This study examines
how diaspora networks in Russia, Kazakhstan, South Korea, and Türkiye influence trade and investment
flows, highlighting their impact on Uzbekistan’s economy. The findings reveal that while remittances and
investments contribute significantly to national development, challenges such as informal labor markets,
regulatory inefficiencies, and weak engagement frameworks continue to limit their full potential. Addressing
these barriers through targeted tax incentives, dual citizenship reforms, and structured diaspora engagement
policies could significantly enhance economic contributions. This study emphasizes the strategic importance
of diaspora networks and calls for proactive policy measures to optimize their role, positioning the
Uzbek diaspora as a key driver of sustainable economic growth.