Munich Personal RePEc Archive

Determinants of FDI in Afghanistan: An Empirical Analysis

Wani, Mr. Nassir Ul Haq and Rehman, Mr. Noor (2017): Determinants of FDI in Afghanistan: An Empirical Analysis.

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Abstract

Purpose: The purpose of this study is to describe the major FDI determinants that show capital flow in Afghanistan and to investigate impact of FDI determinants on economy of Afghanistan in particular. Design/methodology/approach: This Research look into whether FDI determinants influence FDI based in Afghanistan by taking time series data using OLS, over the period of 2005-2015. Findings: The relation of FDI with a few FDI determinants including total debt service, total external debt, gross domestic production and gross fixed capital formation contain a strong positive result on economic growth in Afghanistan; at the same time as the relation of FDI with Inflation contain a negative effect. Research limitations/implications: The restrictions of the study are basically the enlargement of data which cannot be found continuous for 2015 completely for all variables. Originality/value: The objective of this research is to define the main FDI determinants that show capital flow in Afghanistan and to explore impact of FDI determinants on economy of Afghanistan in particular. Secondary objective is the quantify FDI determinants to suggest some policies through which FDI can improve in Afghanistan.

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