Role of Tax and Legal Incentives in Attracting Foreign Capital in The Context of International Investment Policy

  • Authors

    • Olga Moskalenko Department of Economics, Kyrgyz National University named after Jusup Balasagyn, Bishkek, Kyrgyz Republic
    • Aliya Yeleussinova Department of Business Informatics, University of International Business named after Kenzhegali Sagadiev, Almaty, Republic of Kazakhstan
    • Nodira Panjieva Department of Tourism and Hotel Management, Termez State University, Termez, Republic of Uzbekistan
    • Alla Tkachenko Department of Business and Management, Zaporizhzhia Polytechnic National University, Zaporizhzhia, Ukraine
    • Olexiy Yakovlev Department of Business and Management, Zaporizhzhia Polytechnic National University, Zaporizhzhia, Ukraine
    https://doi.org/10.14419/jbzc6c96

    Received date: April 29, 2025

    Accepted date: June 24, 2025

    Published date: July 4, 2025

  • Economic Zones; External Financing; Global Competition; Investment; National Security; Regulatory Measures

  • Abstract

    The study aimed to comprehensively examine the impact of tax and legal incentives on attracting capital into the economy in the examples of Kyrgyzstan and Poland. The study discusses the key aspects of tax and legal incentives, such as tax rebates, preferential rates, and tax holidays, as well as legal measures such as property rights protection and simplification of registration procedures, which create a favourable investment climate for foreign investors. The study results demonstrated that tax and legal incentives have a significant impact on economic development, contributing to the growth of foreign investment, job creation, and economic stability. This provides opportunities to improve the investment climate and stimulate the development of national economies, reducing dependence on external financing, which is especially important in the context of global economic instability. The analysis of incentives in Kyrgyzstan and Poland highlights different approaches to attracting foreign capital, including the creation of special economic zones, preferential conditions for investors, and investment protection agreements. Establishing tax and legal incentives allows governments to more effectively control strategically important resources, contributing to sustainable economic growth and national stability in the face of international competition. The experience of Kyrgyzstan and Poland demonstrates the importance of a comprehensive state policy for the effective attraction of foreign investment. The use of an optimal combination of tax and legal incentives allows not only to attract foreign capital but also to maintain economic security, strengthening the country’s competitive position in the international market.

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    Moskalenko, O., Yeleussinova, A., Panjieva, N., Tkachenko, A., & Yakovlev, O. (2025). Role of Tax and Legal Incentives in Attracting Foreign Capital in The Context of International Investment Policy. International Journal of Accounting and Economics Studies, 12(2), 381-391. https://doi.org/10.14419/jbzc6c96