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28INCREASING OF THE IMPORTANCE OF STOCK MARKETS FOR ATTRACTING INVESTMENTS INTO THE ECONOMY
OF UZBEKISTAN Kazakov X.J.1, Ibodullayev O.Sh.2, Abdukholikova F.A.3
1Kazakov Xushnud Jamshitovich - Student;
2Ibodullayev Otabek Shuxratovich - Student;
3Abdukholikova Farangiz Abdukholik qizi - Student, FACULTY OF SERVICE AND TOURISM, INSTITUTE OF ECONOMICS AND SERVICE SAMARKAND, REPUBLIC OF UZBEKISTAN
Abstract: the article deals with the importance of the stock market in the country. In particular, the contribution of the background biosphere to attracting investments and the issue of covering this issue have been given and some practical recommendations have been provided.
Keywords: stock market, investment, economy, development, strategy.
An analysis of intensifying micro and macroeconomic processes initiated by the President of Uzbekistan Sh.M.Mirziyoev and the five priorities identified in the Action Plan for further development of Uzbekistan for 2017-2021 include the development of national economy, creation of new jobs, the current 2018 "Active entrepreneurship, innovative ideas and technology "will be the basis for this.
But there are some problems that need to be addressed. According to the International Monetary Fund, Uzbekistan ranks 134th out of 187 countries in terms of gross domestic product per capita. In fact, Uzbekistan is a country rich in natural resources and great economic potential. [1]
2017-2021 totaling $ 40 billion. It is planned to implement network programs covering 649 investment projects in US dollars. As a result, the production of industrial goods increased 1.5 times in the last five years, its share in GDP rose from 33.6 to 36 percent, and the share of the processing industry increased from 80 percent to 85 percent. [1]
Today, the stock market of Uzbekistan is experiencing significant changes. Successes both quantitatively and qualitatively are achieved. This is expressed in the following:
S growth of the stock market trade turnover;
S identification of transactions;
S a steady increase in the share of the stock market in the total volume of sales;
S development of the whole stock market infrastructure; Improving the legal framework.
Today, for foreign investors, Uzbekistan is widely recognized as a country with a positive and profitable role in terms of its stability, the relatively inexpensive value of major energy resources, the availability of raw materials, qualified and highly competitive labor power among other countries in the region. The Government of Uzbekistan is trying to accelerate economic growth, in particular, to create the most favorable and attractive investment climate for the production of high technologies only. The President of the Republic of Uzbekistan held 21 highlevel visits in 2017 and held meetings with leaders and representatives of more than 60 state and international organizations. As a result, more than 400 agreements and agreements were reached. Trade and investment agreements worth nearly $ 60 billion were signed. 40 Road Map has been developed and implemented jointly with our foreign partners to ensure timely fulfillment of the received documents and agreements.
In many countries, direct foreign investment is recognized as an opportunity to engage enterprises in the national economy, which can offer competitive products and services in open market conditions. Annually, more than 3 billion foreign direct investment is attracted. More than 85.5 percent of the total investment in the economy belongs to their share, and
14.5 percent of them are under the government's guarantee [9]. Indeed, this is evidence of foreign investors' interest in the economy of the republic, its prospects for its development and its incentive. In addition, direct investments are interpreted as an important factor in economic growth and employment in countries in transition, in particular. That's why the countries of the transitional economy have a high competition in the struggle for this kind of foreign capital.
According to the International Investment Report, in recent years, foreign direct investment has been implemented in three main forms:
1. Acquisitions & Mergers
2. Investing from zero (Greenfield Investment).
3. Joint ventures.
The largest volume of direct foreign direct investment (about 90%), while less than 1% falls to the share of investments from zero, about 10% of joint ventures account for this.
The joint venture is particularly interested in countries with transition economies. In economic literature, the joint venture is divided into two: a contract based joint venture (JV) and a joint venture with equity (Yequity - JV). Capital involvement is not considered in the first type joint venture, and the second one is a joint venture. The first type of joint venture covers various agreements, licensing agreements, equipment and manufacturing processes, as well as controlling the risk of direct foreign investment. Typically, joint ventures seek to increase their stake in reaching a majority (more than 50%) of foreign partners. For example, in the 1970s and 1980s, US corporations managed to maintain their share in joint ventures up to 70-80%. [5]
According to world experience, joint ventures are mainly formed in the following cases: there is a possibility for the foreign investor to distribute his / her own risk for a large gap between partners and their countries. For example, 16% of direct foreign investments directed by the European countries to the manufacturing sector in Thailand fall to the share of "investments from scratch" and the remaining 84% fall on the share of joint ventures. The acquisitive pattern of transnational corporations in developed countries is virtually untouched [9].
In particular, such a global trend was evident at the beginning of reform of Uzbekistan's national economy, with foreign investors, especially Uzbekistan's major investor countries, seeking to create joint ventures (less attention was paid to the establishment of a foreign enterprise). The higher the level of technological production of the transnational corporation in the host country, the greater the demand for major offices or foreign firms with 100% capital. Therefore, the form of a joint venture to attract foreign direct investment in the world practice is not as widespread as the merger. Establishing joint ventures in several countries is characterized by market innovation, unproblematic trends in the market situation, policies of national governments on foreign investment attraction. For example, in the Republic of Belarus, only 4218 out of 4218 foreign-owned investment organizations show that only 54 of the transnational corporations are branches, while thousands of such affiliates, such as Estonia, Hungary, Slovakia, Croatia, are the leading direct foreign investment firms [7].
Depending on the level of development of the Uzbek economy, the legal framework is improving, the strengthening of national enterprises and the liberalization of economic relations have led to a steady shift in foreign capital regulation. Establishment of conveniences for foreign entrepreneurs, guaranteeing stability, as well as increased confidence have begun to give positive results. If in 2001 there were only 1795 enterprises with foreign capital, only 83 of which had 100% foreign capital (4.6%), in 2010 from 4057 enterprises 1513 (37.3%), in 2016 more than 4.2 thousand foreign created enterprises [3].
Over the years of independence, the following achievements have been achieved in the domestic stock market:
Adopted more than 115 normative-legal acts in the sphere of securities market regulation; Over 30,000 state-owned enterprises were privatized and over 1,300 joint-stock companies operate on their basis;
these joint-stock companies have been put into circulation stocks in the nominal value of more than 9.5 trillion sums;
Today, there are more than 140 investment institutions operating in the country, a system of trading and brokerage companies and a two-tier depository [7].
At present the Republican Stock Exchange "Toshkent" is the main organization in the securities market of the country. In general, the stock market infrastructure is improving in our country. Apart from the RSE Toshkent, it includes: a two-tier system of depositories; Settlement and clearing chamber; interbank trading system; Electronic trading system "Elsis-savdo"; brokerage firms; investment funds; management companies.
Based on the above, it can be said that the complex measures on development of the securities market in Uzbekistan are yielding positive results. Mutually beneficial cooperation in the modernization of the stock market with a wide perspective will bring it to the level of world standards.
Today, the Korean Stock Exchange is an active participant in such processes. On October 28, 2010, the Korean Stock Exchange and the State Committee for Privatization, Demonopolization and Development of Competition signed a Memorandum of Understanding on the Development of the Securities Market. Under this memorandum, a unified working committee has been created, which includes experts from both sides to study the situation on the securities market [6].
Partnerships are organized to provide the necessary information technology trainings for the reliable and effective functioning of the securities market and the legal framework regulating it. Another important step for effective cooperation is the General Agreement on the Modernization of the Securities Market of Uzbekistan, signed on August 23, 2011 by both systems.
The Korean Stock Exchange should introduce a unique software and hardware complex for the stock market of Uzbekistan on the terms of "transfer by key", which includes:
> software;
> server and telecommunication services;
> training of local specialists and provision of guaranteed service for one year;
> assistance in improving the legal framework.
The following measures are being undertaken in our country to develop stock market based on world standards:
❖ the market's professional capacities are expanding (for example, previous restrictions on the stock market activity, including other activities), have been abolished;
❖ Measures to create favorable conditions for investors, issuers and professional stock market participants are regularly implemented;
❖ the dynamically developing stock market allows investors of different categories, including diversification of own resources to the population, and directing free funds to buying and receiving revenues.
To increase the effect of the stock markets on attraction of investments into the economy of Uzbekistan, it would be appropriate to pay attention to the following:
1. The development of the secondary stock market and its involvement with the broader segments and small businesses are still a top priority. In order to address this problem, first and foremost, the exchange should also have separate tariff policies for the OTC market.
Because large investors, small businesses and people have different capacities. Secondly, it is necessary to raise the level of knowledge of the population about the stock market.
2. Another key factor is to offer a liquid commodity. It has to be able to buy any shares of any large enterprise. At the moment, the necessary work is being carried out by relevant government agencies (for example, the State Competition Committee).
3. Certainly, the openness of the information should be ensured. If investors know what the stock is going to be, where the funds are spent, whether they return or not, what is the profit, they will make a more precise decision on the purchase of the particular issuer's securities and guarantee that the shares can be easily sold.
In summary, if the above recommendations are made, firstly, businesses may be able to attract considerable funds for their development. After all, the combined capital of small shareholders can be a big asset, which, in turn, allows businesses to diversify their portfolio of investment and increase the diversity of assets. Secondly, today, securities all over the world are the additional source of income. Given the low cost of investment in attracting securities, revenues from stock market operations can dramatically increase.
References
1. [Electronic resource]. URL: http://Prezident.uz/uz/list/viev/1371/ (date of access: 03.12.2018). Decree of the President of the Republic of Uzbekistan Shavkat Mirziyoev to the Oliy Majlis.
2. Report of the President of the Republic of Uzbekistan Sh.M.Mirziyoev at the Cabinet of Ministers meeting dedicated to the socioeconomic development of the country in 2016 and the most important priorities of economic program for 2017. The People's Word newspaper, 24nd, 2017
3. Akhmedov O.M. Management of Enterprises with Foreign Investments. Academy of State and Social Construction under the President of the Republic of Uzbekistan; Committee for Coordination of Science and Technology Development under the Cabinet of Ministers of the Republic of Uzbekistan. -T.: Academy, 2011. -129 b.
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6. Cherkasov V.E. Международные инвестиции. Uchebno-prakticheskoe posobie. M .: Delo, 2007. 160 p. Investment policy: учебное пособие / Ю.Н. Lapygin, A.A. Balakirev, E.V. Bobkova and dr. // pod red. Yu.N. Lapygina. - M .: KNORUS, 2005. - 320s.
7. Karimov I.A. Striving for a more consistent path to renewal and sustainable development, creating a comfortable living environment for our people is our main task. T .: Uzbekistan, 2010.
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