Международный научно-образовательный электронный журнал «образование и наука в XXI веке». Выпуск №14

Key Words:
 Afghanistan, Foreign Direct Investment, Business Index, Taxes. 
INTRODUCTION
Investment is the opportunity, which every business would want to avail to make 
growth, sustain and develop their business in the right time and place, since the year 
2002 Afghanistan open its door and pave the way for foreign investor to invest in this 
country, comparing the other developing countries Afghanistan have various plus point 
which can pave the way for smooth investment, hence below and in this study we are 
explaining all those key point which known as plus point for the investor especially the 
foreign investor to come Afghanistan and invest here,

---

269 
LITERATURE REVIEW 
Borensztein et al (1998) analysed 69 developing countries from previous two 
decades by regression framework. They concluded that FDI is an important vehicle for 
transmission of technology which contributes more to economic growth than domestic 
investment. They also determined that if a host country possesses sufficient advance 
technological capabilities they can attract FDI from other countries. Beside that 
Balasubramanym et al (1996) examined the impact of FDI on developing economies. 
They have utilized OLS method and cross section method. Researcher also followed 
Durham (2004) whose study research conducted effects of FDI on economic growth of 80 
developing countries, which suggested that FDI has and adverse effect dependent on the 
absorptive capacity of host country. According to their research countries whom possess 
outward oriented trade policy can attract more FDI and have positive impact rather than 
countries having inward trade policy. From all research study, it is said that FDI is 
vehicle of economic growth to host countries, but if they are able to take benefit from 
inflows and transfer new technological aspects to host country also Zeren and Ergun 
(2010) explored the factors determining foreign direct investment inflow into European 
Union countries.