Factors limiting investment attractiveness of developing countries (on the example of the Kyrgyz Republic)

This article discusses the factors that limit the investment attractiveness of developing countries and allow developing countries to improve living standards and eventually move into the ranks of developed countries. In general, the article discusses the following factors that limit growth in the economy and hinder the involvement of investment: low rates of savings and investment; underdeveloped financial markets; weak or even corrupt legal systems and failure to enforce laws; lack or non-observance of the right of ownership; political instability; weak public education and health care; tax and regulatory policies that hinder entrepreneurship; restrictions on international trade and capital flows. The article highlights the importance of analyzing the potential gross domestic product (GDP) and its growth rate in the investment decisions of shareholders and fixed-income investors. It is known that investments in physical capital, human capital, and technological development affect the economic growth of the country. In conclusion, we reviewed some of the key factors and requirements related to economic growth and investment in Kyrgyzstan and provided a summary of the factors limiting investment growth in developing countries, using the example of financial performance in Kyrgyzstan.