The role and importance of foreign investments in economical development of Turkmenistan

Developing countries have significant need of capital to develop their economies. If internal resources are not sufficient to satisfy this need, countries have to import capital from external resources to solve this problem.Foreign capital investment can be defined as acquiring assets by person or enterprise in foreign countries. Acquiring of bonds and shares by foreign citizens can be defined as portfolio investment. Acquiring of physical assets such as building, factory, land, production facility can be defined as foreign direct investment.Foreign capital investments might have important and positive effects on such factors as national income, balance of payments, employment, development of human resources, technological progress and productivity of companies. But also might bring some difficulties.In this theses impact of foreign direct investments on Turkmenistan?s economy is stated. Factors affecting foreign capital investments in Turkmenistan are described. Forms and amount of foreign capital investments in Turkmenistan and their distribution by sectors of economy are also researched. For potential investors possible areas for investment and the law of Turkmenistan on foreign investments are provided.