The Impact Of Institutional Reforms On Efficiency In The Construction Sector (Evidence From Uzbekistan)

Abstract

This article provides a theoretical and empirical analysis of the impact of institutional reforms implemented in the construction sector of Uzbekistan on project efficiency. The study assesses the effect of the reforms on efficiency on the basis of project timelines, cost control, and quality indicators, and examines secondary data sources (official statistics, government policy documents, and scholarly publications) using systemic, institutional, economic-statistical, and comparative methods of analysis. The findings show that reforms in the permitting system, certification, and the improvement of standards raise the time and budget efficiency of projects and improve labor productivity. In particular, it is established that institutional mechanisms such as the protection of property rights, the rule of law, and an improved regulatory environment have a positive effect on the total factor productivity (TFP) of construction firms, and that this effect is manifested mainly through gains in the firms’ technical efficiency. On the basis of the results, practical recommendations are developed concerning the sequencing of reforms, the level of digitalization, and the stability of the institutional environment as factors shaping the long-term impact on project outcomes.

Keywords

institutional reforms • construction sector • efficiency • total factor productivity (TFP) • digitalization • permitting system • property rights • government regulation • investment attractiveness • technical efficiency

Authors & affiliations