The present paper is concerned with the attractiveness of countries to direct foreign investments, that is, the host country characteristics that attract direct foreign investment (FDI). It focuses on two types of national characteristics —those that attract inflows of all foreign investment (intermediate products), including FDI, that is, mobility factors; and those that influence the modality of these inflows, that is, reflect the preference for FDI rather than other forms of foreign investment or ‘straight (unbundled) imports of intermediate products by indigenous firms (modality factors)’. The paper reports preliminary findings from a study of plausible determinants of FDI inflows into a sample of 25 countries.
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