Abstract:
Foreign Direct Investment (FDI) is a key economic indicator for the
developing economies. Afghanistan is a developing country which is suffering from
war, terrorism and conflicts from around half of the century. The purpose of this
study is to investigate the key determinants of FDI in Afghanistan. A meta-analysis
technique is used for this research. 179 research publications were taking into the
account for the examination. This collection contain 171 articles and 8 electronic
sources to identify the key determinants of the Afghan economy. The market size,
exchange rate, trade openness, economic growth, infrastructure, conflict and
terrorism were identified as the key factors influencing the FDI in Afghanistan. This
study also summaries the positive relationship of FDI with the market size, trade
openness, infrastructure and the economic growth while the negative relationship
was identified for the FDI with the exchange rate and conflicts and terrorism index.
The study also provide the key findings for the decision makers to improve foreign
investments in Afghanistan while some recommendations for the future researches
regarding the betterment of Afghan economy.
