Abstract
IntroductionFor developing or poor countries that do not have substantial natural resourcesthat can be used in their economic development, foreign direct investment(FDI) may play an important role considering the inability of such countriesto modernize their industries and produce industrialized products. One thebenefits of FDI is the opportunity for local firms to learn from experiencesand capabilities of foreign firms. Kyrgyzstan is a poor and newly independentcountry of the former Soviet Union (FSU). This region is one of the last areasto which foreign investments have been flowing. Garibaldi et al. state that‘foreign investment flows toward the region are in the form [of] FDI mostlyand portfolio investments are scarce’.
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