THE IMPACT OF SMALL AND MEDIUM ENTERPRISE FINANCING ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM UZBEKISTAN

Ergasheva, Aziza, Oltinov, Rustam

Innovation science and technologiy · 2025-yil

Annotatsiya

This study examines the causal relationship between small and medium enterprise (SME) financing and economicgrowth in Uzbekistan using panel data from fourteen regions for the period 2010–2024. A comprehensive econometricframework, including panel unit root tests, Pedroni cointegration analysis, Granger causality tests and Generalized Methodof Moments (GMM) estimation, is employed to assess how SME credit allocation affects regional GDP, employment levelsand overall economic development. The empirical results indicate a statistically significant positive relationship betweenSME credit volume and economic growth, with a 1 percent increase in SME financing associated with an approximate0.23 percent rise in regional GDP. Granger causality analysis reveals bidirectional causality between SME financing andeconomic growth, demonstrating that credit expansion and economic development reinforce each other. Cointegrationtests confirm the presence of long-run equilibrium relationships among the variables, while robustness checks validatethe consistency of the findings. The results emphasize the importance of financial sector development, targeted creditpolicies and institutional strengthening to support sustainable SME development in Uzbekistan

Maqola ma’lumotlari
MualliflarErgasheva, Aziza, Oltinov, Rustam
JurnalInnovation science and technologiy
Nashr sanasi2025-11-01
Jild1
Son11
TilIngliz
DOI10.5281/zenodo.17757039

Kalit so‘zlar

SME financing, economic growth, panel data analysis, Granger causality, cointegration, GMM estimation, Uzbekistan.

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