Investing and financing practices during the period of transition -- case study of the Kyrgyz Republic | |
| Author | Toigonbaev, Almaz Umarovich |
| Call Number | AIT RSPR no. SM-01-40 |
| Subject(s) | Investments--Kyrgyzstan Finance--Kyrgyzstan |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-01-40 |
| Abstract | Sustained economic growth of the Kyrgyz Republic depends, besides successful completion of macroeconomic and structural reforms, on five main factors: net investment growth, technological progress, discovery and exploitation of natural resources, improvement in the managerial practice and productivity of labor. Investment growth can play an important role in the economic success of Kyrgyzstan by affecting short-run output through its impact on aggregate demand and influencing long-run output growth through the impact of capital formation on potential output. Under the command system, investment decisions were taken by the planners on the basis of quantitative targets. Savings took place within the government enterprise sector, through direct and indirect taxation and retained earnings of enterprises and were transferred between enterprises to accord with investment plans through the national budget. In a market economy high rates of investment cannot be financed directly by the state budget, because a much greater proportion of national income accrues directly to households and enterprises. Together with independence and ability to pursue it's own economic and financial policies, Kyrgyzstan faced a lot of problems that came along with transitional period. Constant budget deficits, worsening balance of payments, decreasing output of production and bankruptcies of enterprises and banks have become frequent cases. The situation was even worse resulting from constant changes of rules and regulations and also, lack of them in certain areas. In this unstable environment the failure or success of enterprises and sustainable investment development of the country depends on the ability to deal with financing and investment decision-making. The research attempts to gain insight and analyze financing and investing practices, that have been and are being used in the Kyrgyz Republic and by Kyrgyzstan enterprises during the post soviet period, with provision of possible suggestions leading to the improvement of financial performance of enterprises and sustainable development of investment activity in the country. The objectives of the present research are to: identify the nature of investments represented in country, factors influencing the investment decisions and level of investment in the economy, and preferred types of investment for the country; analyze the external and internal environment faced by enterprises and financial decision-makers during the period of transition; analyze financing and investing practices of enterprises during the transitional era; identify key success and failure factors, related to financing, investing and other financial management issues of enterprises operating in the post soviet period; and give recommendations for the improvement of financing and investing practices, that in turn will effect overall financial performance of enterprises and investment development in the country. |
| Year | 2001 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-01-40 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Ramachandran, N.; |
| Examination Committee(s) | Johri, Lalit M. ;Raub, Steffen P. ; |
| Scholarship Donor(s) | Asian Development Bank-Japan Government ; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001 |