rowth rate of the host market, and studies have examined both income and growth to find as a rule that their effects are statistically significant, with a positive effect on inward FDI at both country and regional levels. Some exceptions to this have been found, but it is a good general indication.
Another factor determining a good location could be the availability of certain resources in the host economy, and there are two broad categories of such resources: infrastructure and labor resources. It is obvious that the better the infrastructure of the host economy, the more attractive it will be to foreign investors. It would be expected in fact that the level of infrastructure would have a positive effect on the inflow of FDI, and most studies have concluded that their infrastructure does have a positive and significant effect. If a country wishes to attract FDI, then, improving the infrastructure would seem to be an important step toward achieving increased levels of investment. At the same time, there is no clear
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