Abstract
Since a century ago, there have been many efforts to attract foreign investment in Afghanistan. These efforts include the codification of laws and policies and the provisionof facilities for participation of foreign companies in the Afghan economy through partnership with the government and partnership with private sector in this country. Since 2001, with the support of the market economy system in Afghanistan's constitution and the reform of some governmental institutions, these efforts have been accelerating, hoping thatencouraging foreign investors and their presence in the market will improve the economic situation. Unfortunately, these efforts have failed to meet the market expectations and the Afghanistan’s government purposes in order to attract foreign investment in Afghanistan. Even in 2014, and after that, the outflow of capital (domestic and foreign) has also beenreported from the economy of Afghanistan. Various variables can be considered as an obstacle to the development of foreign investment in Afghanistan, war, corruption, lack ofinfrastructure, lack of energy, lack of trained workforce and non-accountability of the legal system are in this category. In this research, it was assumed that the existing challenges in different sectors of legal framework of foreign investment in Afghanistan are the main obstacles to the growth of foreign investment in this country. In order to prove the hypothesis, the study was carried out using the experimental research method by referring to the investors and experts in the economic zone of Herat in western Afghanistan. The research results indicate that in some sectors, the legal system needs to be reformed, but in general and by comparing the legal system with other variables, the measure of investors' satisfaction is satisfactory, and regulations are not as the main obstacle to the growth of foreign investment in Afghanistan, thus based on the analysis of data, the existing challenges in the laws and policies is not the main obstacle to the growth of foreign investment in Afghanistan. Therefore, it is necessary for Afghanistan's government to take into account the challenges such as security problems, corruption, lack of infrastructure, lack of energy and lack of trained workforce and take steps to address them.
Highlights
Afghanistan has been interested in attracting foreign investment about a century ago, practical and legislative measures have taken place in various periods in this context, but in practice, as Afghanistan's government and people expected, the foreign investment did not grow
It can be concluded that generally Afghanistan's laws in the field of economics and investment, on average, can attract investors' confidence
The Private investment law, laws in the areas of taxation and customs tariffs, banking, insurance, mines and private property based on the economic requirements of the country and the interests of the people and investors should be reviewed
Summary
Afghanistan has been interested in attracting foreign investment about a century ago, practical and legislative measures have taken place in various periods in this context, but in practice, as Afghanistan's government and people expected, the foreign investment did not grow. Afghanistan's withdrawal from this unfavorable situation requires effective measures to be taken in various economic and social spheres, including attracting foreign investment. After the fall of the Taliban, the Afghanistan government, has carried out several activities in the field of foreign investment and economic development, but most of them did not have beneficial results in attracting foreign investors. The series of challenges in the Afghanistan legal system have prevented the growth of foreign investment in this country. The study seeks to understand the legal barriers to the growth of foreign investment in the economic zone of Herat in western Afghanistan. The researcher hopes that can provide some recommendations to develop the Afghanistan legal system in the foreign direct investment area, from the research findings
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