Analysis of foreign direct investments into developing countries with focus on Afghanistan

Abstract

Foreign direct investments (FDI) are one of the characteristics of the globalised world. They represent the largest share of the capital flows especially in to the developing countries and emerging economies. Host countries view FDI as a significant source of economic development, bringing with it many benefits for the private sector as well as for the host economy overall. This paper focuses on the FDI flows in the developing countries. In particular, Afghanistan has been selected as a case study where the investment environment and FDI inflows had been assessed. PESTEL and SWOT analyses and analysis of the FDI inflows were used for this purpose.