Uzbekistan’s textile industry, a vital pillar of its economy, grapples with challenges in resource allocation, competitiveness, and sustainability within a transitioning post-Soviet landscape. This article explores the application of matrix-based methodologies in economic modeling for the textile sector, utilizing the Policy Analysis Matrix (PAM) to evaluate comparative advantages and matrix decision-making algorithms to optimize economic potential. Leveraging empirical data from Uzbekistan’s cotton production and textile clusters, the study uncovers inefficiencies stemming from historical policy distortions, water scarcity, and market constraints, while proposing strategic scenarios for improvement. Key findings encompass domestic resource cost (DRC) indicators revealing comparative advantages in efficient cotton variants and aggregated efficiency indices identifying clusters for diversification. The fusion of these matrices promotes allocative efficiency, sustainable development, and targeted policy reforms, enriching the discourse on industrial economics in emerging markets.

Policy Analysis Matrix, Economic Potential Optimization, Uzbekistan Textile Competitiveness, Comparative Advantage, Decision-Making Matrices, Resource Allocation Efficiency, Sustainability in Cotton Production

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