INTERNATIONAL JOURNAL ON ECONOMICS, FINANCE

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Vol. 5 No. 6 | Jun 2023

Clustering Activities of Subjects of the Cotton Textile Industry

Khalikov Tolibjon Luptullaevich

ABSTRACT ARTICLEINFO
The article discusses the theoretical issues and principles of the formation of Article history:
agro-clusters, as well as the development trends of this system in the cotton- Received 04 Apr 2023
textile industry of the Republic of Uzbekistan, its features and advantages. Received in revised form
The effective use and existence of business clusters are considered within 03 May 2023
the framework of such aspects as structural, functional, purposeful, Accepted 30 Jun 2023
evolutionary on the platform of categorical-system methodology.
Keywords: market
economy,
competitiveness,
economic relations,
material interest, cotton
and textile industry,
cluster, agrocluster,
theory and principles of
_____________________ clustering.
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Introduction.
Recently, the concept of business clusters has become the most widely used term in economic and legal
practice. The emergence of the need for business clusters in the post-Soviet space is mainly due to the

Copyright (c) 2023 Author (s). This is an open-access article distributed under the terms of E-mail address: [email protected]
Creative Commons Attribution License (CC BY).To view a copy of this license, visit Peer review under responsibility of Emil Kaburuan.
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INTERNATIONAL JOURNAL ON ECONOMICS, FINANCE AND SUSTAINABLE DEVELOPMENT ISSN (electronic): 2620-6269/ ISSN (printed): 2615-4021

Vol. 5 No. 6 | Jun 2023 265

movement of inefficient market relations between sectors of the economy. For the effective use and
existence of business clusters, it is necessary to consider them within the framework of such aspects as
structural, functional, purposeful, evolutionary, on the platform of a categorical-system methodology.
Here, their main questions are the disclosure of the essence of clusters of an economic nature, their
explanation as a category and definition, generalization of the characteristics of economic entities in
comparison with other forms of integration associations. From the point of view of substantiating the
effectiveness of their formation and existence, studying the structural and elemental composition,
structure, mechanisms for setting goals and functioning, the evolutionary aspects of business clusters
are the most pressing problems.
In the context of the development of a market economy, globalization and competition between market
entities, there is an increasing need to increase the competitiveness of the country and individual
regions, as well as the goals and objectives of the network economic complex, interconnected in the
technological and economic chain, incoming enterprises and organizations.
Main part.
Currently, the development of clusters is a recognized tool for sustainable innovative development and
increasing the competitiveness of regional agriculture and the agro-industrial complex as a whole. The
use of the cluster form of organization of agricultural activities is provided for in a number of
legislative, regulatory and policy documents, the most important of which is: “The Strategy for the
Development of Agriculture of the Republic of Uzbekistan for 2020-2030”, where one of the strategic
priorities is to create an enabling environment for agribusiness and the value chain.
The cluster has effects that are not characteristic of other forms of spatial organization of production,
including a synergistic effect, social capital, public-private partnerships, etc., which together give it
additional competitiveness. The cluster approach is an integral part of the theory of the spatial
organization of production. The cluster phenomenon is becoming the main component of the economic
development of countries and regions. In the US, UK, France, Germany and other developed countries,
more than half of industrial output is produced and exported through clusters.
"Development of the Republic of Uzbekistan for 2017-2021", approved by the Decree of the President
of the Republic of Uzbekistan No. DP-4947 dated February 7, 2017 "On the Action Strategy for the
Further Development of the Republic of Uzbekistan" modernization and accelerated development of
agriculture in the Republic of Uzbekistan, deepening structural reforms and rapid development
agricultural production, further strengthening the food security of our country, environmentally friendly
products. It is planned to expand production, significantly increase exports, increase the potential of the
agricultural sector, grow and process, harvest, store and sell agricultural products, engage in
construction work and provide services, primarily to create favorable conditions for the promotion and
development of diversified farms, for the implementation investment projects for the production of
agricultural products; Construction of new processing facilities equipped with modern high-tech
equipment for deeper processing of agricultural products, semi-finished and finished food products, as
well as packaging products, reconstruction and modernization of existing ones, further expansion of
production infrastructure; expansion of research work on the storage, transportation and sale of
agricultural products, the provision of agrochemical, financial and other modern market services, the
creation and introduction into production of new breeding varieties of agricultural crops that are
resistant to diseases and pests; local soil-climatic and ecological conditions and highly productive
breeds of animals.

Copyright (c) 2023 Author (s). This is an open-access article distributed under the terms of E-mail address: [email protected]
Creative Commons Attribution License (CC BY).To view a copy of this license, visit Peer review under responsibility of Emil Kaburuan.
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INTERNATIONAL JOURNAL ON ECONOMICS, FINANCE AND SUSTAINABLE DEVELOPMENT ISSN (electronic): 2620-6269/ ISSN (printed): 2615-4021

Vol. 5 No. 6 | Jun 2023 266

In recent years, in the practice of many countries, including at the regional level, one of the main
reserves for increasing competitiveness in the post-Soviet space is the creation of clusters linked by
close economic ties and complementing each other. In the process of locating production and
developing the region's economy, various forms of territorial organization have developed.
Traditionally, free economic industrial regions, agglomerations, and regional production complexes are
distinguished. Clusters are a modern, rapidly developing form of territorial organization of the regional
economy. Taking into account their local advantages and peculiarities, the problems of forming clusters
and realizing regional competitive advantages are usually considered at the regional level.
In some cases, the cluster is considered as a governing body or a superstructure over the entities
included in the cluster for economic reasons. Western practice proves the opposite, that is, a cluster is a
set of competing enterprises that cooperate, but are also interconnected by horizontal and vertical links,
are formed on the basis of an institutional factor and unite economic institutions with each other
through contractual mechanisms. The search for competitive advantages in the cluster focuses on
external factors at the institutional level, such as public-private partnerships, social capital, synergy,
cooperation between the state, business, science and education, which creates an additional competitive
effect.
Results and analysis.
The study of the approaches and views of scientists shows that there are different approaches to the
problems of clustering. A regional cluster is a group of interconnected enterprises and organizations
localized in a territory that interact in the process of production and sale of goods and services within
the chain and value to achieve a certain economic effect, create and implement competitive advantages.
Unlike other forms of territorial organization of the economy, a cluster is characterized by market
relations based on competition and cooperation between members of a cluster association, the ability to
adapt to changing environmental conditions. Clusters are formed in a market economy, when
enterprises are interested in strengthening their competitive advantages and getting more benefits from
joint activities in a particular area. At the same time, the regional cluster as a form of territorial
organization of the economy is consistently developing not only in industry, but also in the service
sector. The cluster method of territorial organization of the region's economy is aimed at studying the
conditions for the functioning of specific enterprises and organizations.
An analysis of cluster theories has shown that the selected principles of cluster formation (geographical,
qualitative, horizontal, vertical, focal and lateral) do not always adequately reflect the modern
requirements for organizing cluster associations. The principles of organization and functioning of
regional clusters include regional specificity, zonal specialization, regional localization, competition
and cooperation within the cluster, interdependence, innovativeness, dynamism, multiplicity of
participants, commonality of joint activities of companies, unity of the information space, corporate
culture, commonality of the regional cluster structure.
Conclusion.
The study of existing approaches to the classification of clusters allows us to conclude that at present in
science and practice there is no generally accepted ordered system of criteria and indicators for
classifying clusters. The development of a methodology for classifying and evaluating the effectiveness
of cluster activities will allow, without hesitation, to develop a scheme for the formation and
functioning of regional industrial clusters, which will ultimately make it possible to get rid of
unprofitable agriculture, as well as significantly increase the export potential of the country and regions.
Copyright (c) 2023 Author (s). This is an open-access article distributed under the terms of E-mail address: [email protected]
Creative Commons Attribution License (CC BY).To view a copy of this license, visit Peer review under responsibility of Emil Kaburuan.
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INTERNATIONAL JOURNAL ON ECONOMICS, FINANCE AND SUSTAINABLE DEVELOPMENT ISSN (electronic): 2620-6269/ ISSN (printed): 2615-4021

Vol. 5 No. 6 | Jun 2023 267

The cluster strategy of economic development in its most general form assumes the receipt of benefits
associated with the geographical concentration of enterprises. The economic mechanism for obtaining
such advantages, as a rule, is associated with an increase in the specialization of enterprises, an increase
in sales and expansion of the sales market, maximization of efficiency and minimization of costs.
The concept of a cluster refers to a geographically limited concentration of interrelated firms and can be
used as a keyword for older concepts such as industrial districts, specialized industrial agglomerations,
and local production systems.
Despite the large number of definitions of the concept of "cluster", there are a number of common
features, the mention of which makes it possible to single out this phenomenon of the economy:
 geographical localization of enterprises;
 interdependence of market entities on the final product;
 the impossibility of achieving ideal or expected production, social and economic results without
clustering;
 the objective need for close economic ties between enterprises;
 availability of a common institutional and market infrastructure.
Successful implementation of these principles is observed in agro-clusters organized on the basis of the
territorial concentration of specialized suppliers and producers, connected by a common technological
chain, without administrative intervention by state authorities.
List of used literature.
1. Decree of the President of the Republic of Uzbekistan No. DP-4947 dated February 7, 2017 "On the
Action Strategy for the Further Development of the Republic of Uzbekistan".
2. Zokhidov G.E. "The effectiveness of the organization and management of production in the light
industry of Uzbekistan by the cluster method." Abstract of a doctoral dissertation, Tashkent, 2017.
3. Cluster policies and cluster initiatives: theory, methodology, practice / ed. Yu.S. Artamonova, B.B.
Khrustalev. Penza: IP S.Yu. Tugushev, 2013.
4. Yusupov E.D. Key problems of agricultural policy: food security and diversification Journal of
Science and Healthcare Exploration (JSHE) ISSN: 2581-8473 Volume - 1, Issue - 3, May-June -
2019 BiMonthly, Peer-Reviewed, Refereed, Indexed Journal 1- 8 р.
5. Innovative processes in the agricultural sector of the Republic of Uzbekistan International Scientific
and Practical Conference FUNDAMENTAL AND APPLIED SCIENTIFIC RESEARCH March
2020 Berlin, Germany (30-41 р).

Copyright (c) 2023 Author (s). This is an open-access article distributed under the terms of E-mail address: [email protected]
Creative Commons Attribution License (CC BY).To view a copy of this license, visit Peer review under responsibility of Emil Kaburuan.
Hosting by Research Parks All rights reserved.
https://creativecommons.org/licenses/by/4.0/