Abstract:The purpose of this study was to determine which investment climate variable(s) best predict a country's potential for success in attracting inward Foreign Direct Investment. Using data from the World Bank and the UNCTAD collected in 141 countries, we found that labor regulation was the sole distinctive factor between high performance countries and low performance ones. Further manipulations using country potential as a covariate indicated that tax administration separated "front runners" from "below potential… Show more
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