Econometric Modeling of the Use of Digital Technologies in Improving the Infrastructure of the Railways of Uzbekistan

Abstract

This study examines the growing global trend of integrating digital technologies into various economic sectors, with a specific focus on the Republic of Uzbekistan. Following Presidential Decision No. PQ-4699, adopted on April 28, 2020, significant steps have been taken to promote the digital economy and implement electronic government solutions. In this context, the railway transport sector, particularly JSC "Uzbekistan Railways," has become a key area for digital transformation. The research highlights the strategic importance of introducing digital software to address infrastructure challenges and enhance operational efficiency. Drawing on international perspectives, the study identifies key benefits of digitalization in railway systems, including cost reduction, improved management, and business model innovation. An econometric model was developed to assess the relationship between the adoption of digital technologies and economic outcomes in the railway sector. The analysis demonstrates a strong positive impact, where a 1% increase in investment in digital software corresponds to a 2.53% rise in passenger traffic. Key indicators used in the model include total revenue from railway transport (d), total freight transported (freight), and the number of passengers. The variable (dtx) was used to represent product costs associated with digital supply development and infrastructure management. The findings affirm the critical role of digital technologies in advancing railway infrastructure and support broader economic growth initiatives in Uzbekistan.