Do you mean the L (location) advantages of the host country? According to John Dunning's work (search for OLI), FDI decisions also depend on ownership (O) and internalization (I) factors, not only on L.

thanks Tiia..

Chiraz, I am not sure what you mean by factors on attractiveness.  However, there is a sample space of known factors that determine the inflows of FDI in a given region or country in general.  Then there are host economy factors that accentuate the growth effect of the retained FDI inflows on GDP in a given region or country; such as growth in financial sector depth, growth in human capital, growth in ICT infrastructure, vibrant export promotion policies, etc, etc.

I am not sure if this is what you wanted differentiated.

Barnabas Kiiza

Chiraz,

Tiia and Barnabas are both right that the term "factors on attractiveness" is not well defined. I would assume it is one part of the determinants of FDI, at the side of the host country, which are usually called locational determinants ("L" in Dunning's eclectic paradigm). Generally speaking, a location attracts FDI if it combines three factors: (1) business opportunities (based on natural resources, skilled labour etc.), (2) a favourable regulatory environment, and (3) FDI promotion measures. Can we say this is "attractiveness"? Or should we rather stick to Dunning's L to denote it?  Moreover, determinants of FDI also include the two factors related to corporate strategies (the ownership (O) and internalization (I) advantages of firms included in the eclectic paradigm), and the effects of home country policies (which are so far only implicit in Dunning's theory but are gaining importance in the new sources of FDI).

Best regards

Kalman Kalotay