Ilmiy tadqiqot markazi

THE GREEN ECONOMY AND THE DEVELOPMENT OF THE CAPITAL
MARKET IN UZBEKISTAN 
 
Ochilov Shokhrukh - 
Senior researcher, Institute for Forecasting
and Macroeconomic Research
 
The green economy has become a critical sector in recent years, as many countries 
transition towards sustainable development. Uzbekistan is no exception, as the country has 
made significant strides in developing the green economy. However, one key question is 
whether the green economy has any impact on the development of the capital market in 
Uzbekistan. This article aims to address this question by conducting an econometric analysis 
to determine the impact of the green economy on the development of the capital market in 
Uzbekistan. The study uses data from the Central Bank of Uzbekistan, the State Committee of 
the Republic of Uzbekistan on Ecology and Environmental Protection, and Bloomberg on the 
value of green bonds issued, the market capitalization of the Uzbekistan Stock Exchange, and 
other relevant factors such as gross domestic product (GDP) and interest rates. The article 
presents the results of the analysis, which suggest that the green economy has a significant 
positive impact on the development of the capital market in Uzbekistan. Additionally, the 
study’s policy implications suggest that policymakers in Uzbekistan should
continue to 
promote the development of the green economy and implement policies that facilitate 
investment in the sector to stimulate economic growth and the growth of the capital market. 
Overall, this article provides valuable insights into the relationship between the green 
economy and the development of the capital market in Uzbekistan. 
The development of the green economy has become a priority for many countries, as it 
offers opportunities for sustainable growth and environmental preservation. As a result, 
numerous studies have examined the relationship between the green economy and the 
development of the capital market. This literature review provides an overview of the key 
findings of these studies and highlights their relevance to the current study on the impact of 
the green economy on the development of the capital market in Uzbekistan. 
Several studies have found a positive relationship between the green economy and the 
development of the capital market. For example, a study by Gao, Li et al. (2021) on the 

---

366 
Chinese green bond market found that the issuance of green bonds positively affected the 
liquidity and pricing of the overall bond market. Similarly, Su, Chen et al. (2023) found that 
the green bond market in Taiwan had a positive impact on the development of the local 
capital market. These studies suggest that the development of the green economy can lead to 
the growth of the capital market. 
The positive relationship between the green economy and the capital market is also 
supported by theoretical literature. For example, Georgeson, Maslin et al. (2017) argue that 
the green economy can provide a new avenue for investors to invest in sustainable projects 
and companies, which can create demand for green financial products such as green bonds 
and stocks. This, in turn, can lead to the growth of the capital market. Similarly, Ullah, Fang et 
al. (2020) argue that the development of the green economy can lead to the growth of the 
financial sector as a whole, as it creates new investment opportunities and financial 
instruments. 
Overall, the literature suggests that the green economy can have a positive impact on the 
development of the capital market, as it creates new investment opportunities and financial 
products. Economic growth and interest rates are also important determinants of the 
development of the capital market. These findings are relevant to the current study, which 
examines the impact of the green economy on the development of the capital market in 
Uzbekistan. 
To examine the impact of the green economy on the development of the capital market 
in Uzbekistan, we used an econometric model. Specifically, we estimated a linear regression 
model using panel data for the period 2010 to 2021. The dependent variable was the market 
capitalization of the Uzbekistan Stock Exchange, and the independent variables were the 
value of green bonds issued, GDP, and interest rates.