Gulamova Farzona Toshmukhammad kizi

Tashkent State University of Economics

PhD student,

Tashkent, Uzbekistan.

Email:farzonamustafaeva97@gmail.com

ORCID:0009-0002-7556-1067

Abstract: This article investigates the theoretical and methodological foundations of market mechanisms and examines their role in the modern economy. The study analyzes the functional characteristics of market mechanisms within the economic system and conducts a comparative assessment of the approaches proposed by classical, neoclassical, Keynesian, and institutional economic theories. Particular attention is paid to the transformation of market mechanisms under the influence of the digital economy, innovative technologies, and global economic integration processes. The findings reveal that market mechanisms play a crucial role in the efficient allocation of economic resources, the promotion of competition, the stimulation of investment activity, and the achievement of sustainable economic growth. The study also demonstrates that the effective functioning of market mechanisms requires a well-developed institutional framework, a competitive market environment, strong legal protections, and balanced government regulation. Based on the research findings, several scientific and practical recommendations are proposed to enhance the efficiency and adaptability of market mechanisms in the context of contemporary economic development.

Key words: market mechanisms, market economy, economic system, supply and demand, competition, economic equilibrium, institutional economics, digital economy, innovation, economic efficiency, economic integration, government regulation, investment climate, economic stability, economic reforms.