INDUCEMENT OF FOREIGN INVESTMENT IN TURKISH AND KAZAKH LAWS

Insufficiency of internal resources of developing countries creates need of recalling of external investment tools to the country. Many developing countries proposes tax and inducement pack to the foreign investors in order to provide exterior resources and technology needed during development process. However, being applied of just these methods fall behind in recalling foreign investments. Because, foreign investors have to consider factors like economic and political stability, sufficient potential demand, accession to the raw material and opportunity of effective producing of the invested country while deciding to invest in another country. Moreover, and maybe most significantly, in order to establish secure investment environment, it is unarguable that host country’s being part of conventions which are internationally signed such as moderate investment regulations play a big role in inducement of foreign investments. In this regard, it has been observed that Turkey and Kazakhstan, which are both developing countries and need foreign investments, allow for rudiments to promote foreign investments by changing investment regulations at times in order to attract investments. Hence, it is undoubted that promoting investments and intensive investments made right after will play a significant role in the development of the two countries