The Impacts of Insecurity and Instability on FDI Inflow and Business Activities in Afghanistan

Abstract: Despite the existence of plenteous investment opportunities in various sectors such as mining, infrastructure, energy, agriculture, services, construction, and telecommunication, moreover the unprecedented attention of the international community, large-scale financial assistance in the last two decades, the strong support and significant reforms initiated by the government to facilitate a better environment for doing business; unfortunately, Afghanistan remains one of the most unattractive poor economies in the world. Four decades of conflicts, the deterrent security situation, and the political instability significantly caused backwardness and poverty and negatively impacted the overall economic growth in the country. Therefore, this study investigates the negative impacts of insecurity and instability on the inflow of foreign direct investments (FDI) and business activities in Afghanistan. Meanwhile, it explores the role of FDI and business activities in stimulating economic growth, improving security conditions, and assuring peace and stability in the country. The research employed a survey questionnaire to collect the primary data from the Afghan business community who have been directly and indirectly affected by the consequences of insecurity and instability. At the same time, the literature of other studies was comprehensively reviewed to discuss the research topic and collect the secondary data. A mixture of qualitative and quantitative approaches was adopted to analyze and describe the research findings. Keywords: Afghan Economy, Business Activities, Economic Growth, FDI, Insecurity and FDI, Instability. Title: The Impacts of Insecurity and Instability on FDI Inflow and Business Activities in Afghanistan Author: Atiqullah Nusrat International Journal of Recent Research in Thesis and Dissertation (IJRRTD) Vol. 3, Issue 1, January 2022 - June 2022 Page No: 54-64 Paper Publications Website: www.paperpublications.org Published Date: 13-May-2022 DOI: https://doi.org/10.5281/zenodo.6546658 Paper Download Link (Source): https://www.paperpublications.org/upload/book/The%20Impacts%20of%20Insecurity-13052022-3.pdfInternational Journal of Recent Research in Thesis and Dissertation (IJRRTD), Paper Publications, Website: www.paperpublications.or