Directions for Enhancing the Efficiency of Agribusiness Organization and Investment Support: The Case of the Republic of Karakalpakstan
DOI:
https://doi.org/10.31150/ajebm.v8i8.3941Keywords:
Agribusiness efficiency, Investment support, Sustainable agriculture, Karakalpakstan, Econometric analysis, STATA, Food security, Agricultural innovationAbstract
Agribusiness plays a vital role in Uzbekistan’s economy, contributing significantly to GDP and employment, with Karakalpakstan holding strategic importance due to its agricultural resources and market potential. Despite reforms such as liberalizing input markets and promoting agro-clusters, the region faces persistent challenges, including water scarcity, outdated technologies, and underinvestment, which limit productivity and sustainability. Previous studies acknowledge the importance of investment in agriculture, but there is insufficient analysis of how investment efficiency, organizational reforms, and water management jointly influence agribusiness outcomes in Karakalpakstan. This study evaluates the efficiency of agribusiness organization and investment support in Karakalpakstan, integrating farm-level data (2016–2024) with official statistics and applying econometric methods to identify the relationships between investment, productivity, water efficiency, and profitability. The analysis shows that investment strongly correlates with higher land productivity (r = 0.773) but demonstrates a negative correlation with profitability (r = -0.534), indicating inefficiencies and delayed returns. Water use efficiency remained stagnant at 1100 m³/ton, underscoring the lack of technological modernization in irrigation. Despite these constraints, targeted investments and the development of agro-clusters have shown potential in strengthening value chains, innovation, and rural employment. By combining micro-level farm data with macro-level policy analysis, this research provides a comprehensive perspective on agribusiness performance in an ecologically fragile region. The findings highlight the need for region-specific investment programs, digital agriculture adoption, and sustainable water management to enhance efficiency, resilience, and competitiveness of agribusiness in Karakalpakstan.
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Copyright (c) 2025 Ayzada Tolıbekovna Seyfullaeva
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