Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

Figure 5.13: Skewed Firm Size Distribution in Uzbekistan, 2012 
Lorenz (employment)
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
0.00 0.03 0.05 0.08 0.11 0.13 0.16 0.19 0.21 0.24 0.26 0.29 0.32 0.34 0.37 0.40 0.42 0.45 0.48 0.50 0.53 0.55 0.58 0.61 0.63 0.66 0.69 0.71 0.74 0.77 0.79 0.82 0.85 0.87 0.90 0.92 0.95 0.98

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Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth
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Next is the second key empirical relationship of the gravity equation—the 
strong negative relationship between physical distance and exports. Figure 5.15 
shows that the flow of exports diminishes with as the distance to the trading 
partner increases. Distance is often interpreted as a trade impediment because 
it creates “barriers to trade” in terms of transport costs. Similar to the previous 
graph (Figure 5.14), the red line depicts predicted values of a regression of the 
log of the export flow on the log of distance. The elasticity of distance is –1.4 
GDP = gross domestic product.
Source: Authors’ calculations based on data from International Monetary Fund. Direction of Trade 
Statistics. https://data.imf.org/?sk=9D6028D4-F14A-464C-A2F2-59B2CD424B85 (accessed 16 November 
2018). 
Source: Authors’ calculations based on data from International Monetary Fund. Direction of Trade 
Statistics. https://data.imf.org/?sk=9D6028D4-F14A-464C-A2F2-59B2CD424B85 (accessed 16 November 
2018). 
Figure 5.14: Uzbekistan’s Exports and the Size of
Destination Countries 
Figure 5.15: Uzbekistan’s Exports and the Distance to Destination 
Log of GDP
Log of exports
y = 0.2356x + 8.9659
8
10
12
14
16
18
20
22
24
23
24
25
26
27
28
29
30
Log of distance
Log of exports
8
10
12
14
16
18
20
22
24
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
y = -1.4013x + 26.7

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