Abstract
This paper aimed to measure the determinants of Foreign Direct Investment (FDI) in countries that are leaders in attracting foreign capital. Drawing from empirical literature, economic and institutional variables that influence the level of FDI in selected countries were identified. Using a panel data approach, the significance of these variables in determining FDI inflows in these economies was estimated. The results indicate that variables such as GDP, trade openness, exchange rate, corruption control, interest rate, imports of goods and services, and country risk are significant drivers of FDI for the selected group of countries.
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