摘要：This paper assesses the importance of infrastructure availability in the host developingcountry in increasing its attractiveness for overseas investors. I also take into account market size,economic development, macroeconomic stability, regional and income groupings, ability of thepeople to speak an international language and access to sea. Using annual data for a panel of 90developing countries over the years 1980-2007, I found that consistent with the prediction of themarket size hypothesis, population is found to have a significant positive effect on inward FDI. Soundmacroeconomic management proxied by exchange rate and economic development have plausiblesignificant effects on FDI inflows, whereas, high inflation signalling economic disorder deter foreigninvestors. Infrastructure availability measured through telephone-density positively influenceoverseas investors location choice. Though, it is sensitive to alternative proxy measures but robustwith respect to specification of the estimating model. Language and geographic location dummiesconfirm that foreign firms prefer Anglophones, and are reluctant to invest in South Asia, MENA andFrancophone countries. A significant time trend is also witnessed.
