Keywords
Abstract
This study explores the role of industrial clusters in driving economic growth and attracting foreign direct investment (FDI), with a focus on the impact of fiscal policies. The regression analysis reveals a strong correlation between GDP expansion, industrial production, and investment flows, highlighting the
necessity of government support mechanisms such as tax incentives. While Uzbekistan's cluster system has demonstrated substantial growth, challenges related to declining profitability and rising financial obligations underscore the need for enhanced fiscal policies. The findings suggest that reducing corporate, property, and land taxes could significantly boost investment inflows, leading to increased industrial output, export expansion, and strengthened economic competitiveness. A well-structured tax incentive framework is identified as a crucial instrument for fostering FDI, supporting industrial modernization, and ensuring the long-term sustainability of Uzbekistan’s cluster-based economy.