Gravity model of Construction. In case of Uzbekistan

Abstract

This paper aims to analyze the construction trade between Uzbekistan and its main trade partners. In addition, a gravity model analysis trade between Uzbekistan and its trade partners over a period of 21 years, from 2000 to 2020 was conducted. The regression results corroborated the basic assumptions of the gravity model and designed which the GDP of Uzbekistan and GDP of trade partners of Uzbekistan has a positive influence on the construction trade volume. The population of partners also has a negative effect on international trade. And the transportation time(TT) has a main role in promoting the development of construction trade flows. Moreover, the TT of Uzbekistan has a negative effect on contruction trade flows. The trade development Uzbekistan is facing many problems such as long time logistic systems and transportation structure. The result of this paper provides for construction of Uzbekistan trade policy and future planning for the better trade with its partners. High transportation costs and low-quality logistic structure may have negative influences on the international trade. A better transportation systems has more opportunity to captivate foreign direct investments and international trade ability.