Foreign direct investments in transition economies: The case of Kyrgyzstan

During the last twenty years the foreign direct investments (FDI) have significantly effected the growth and development of the national economies around the world and as well as transition economies. This study examines the relationship between the economic development and FDI consequently what kind of infrastructural, legislative and innovative steps should be taken by the countries in order to attract FDI and pursue an increase in economic welfare.In the past and nowadays the FDI has been played an important role in the development of many countries. The main reason is the lack of sustainable economy development and external financial sources beside the internal savings. In particular, by attracting an investment funding almost each closed national economy will open to the world trading and become more liberalized. Finally becoming a part of the world trading system it could attract the external financing in the form of foreign investments.The paper describes and defines theoretical definitions of transition economy countries and related market structures, keywords within FDI conceptual framework. Considering the case of Kyrgyzstan as a transition economy country, we have given a solid analytics based on necessary legal framework, the type of regional economic structuring, described encouraging governmental policies and performed sectoral analysis of the Kyrgyzstan.As a resut of the study we have obtained an information that the FDI has a direct and obvious impact on the economic growth and development of the transition economies.Keywords: Foreign direct investment (FDI), transition economy countries, comparative macro and sectoral analysis, economic development and growth.