Abstract: Financial Intermediation, Sustainable Banking and Marketing

Abstract:
This paper is mainly concentrated on Uzbekistan’s accession process to the World Trade Organization and recent reforms in country’s foreign trade policy. By employing the partial equilibrium model, it pays special attention to the chemical industry trade. Moreover, expected changes in imports of chemicals, budget revenues and consumer welfare also revealed in the paper. Specifically, two scenarios, namely abolition of country specific discrimination practices in imports or mere tariff reduction, are considered. Results show that in the former case, budget revenues will grow considerably, imports and consumer welfare will decrease, while in the latter case imports of chemical products and consumer welfare will slightly increase and budget revenues will decline. It is concluded that in the former case, the negative effect will be outweighed by creating a fairer and more competitive environment, since removing discrimination practices such as import-specific excise taxes and exemptions on import duties payments for state companies stabilizes balance of resource allocation within and among industries.