An Evidence-Based Approach to Infrastructure Development in Uzbekistan

The introduction of the new Toshguzar-Boysun-Kumkurgon railway line in the southeastern part of Uzbekistan is associated with various benefits. The goal of this chapter is to quantify the impact of this line on the financial performance of enterprises and institutions given specific time frames and regions. Analysis reveals positive regional (region of intervention) and spillover effects (neighboring regions). In particular, there were average increases in the short- and long-term profits of enterprises and institutions compared to the outcomes of counterfactual regions of SUM246 billion and SUM319 billion, respectively. The results also show statistically significant anticipation and postponed effects. The policy implication of these findings maintains the notion of local infrastructure financing through different tools, including the well-known principle of Tax Increment Financing, which is put forward for discussion.