US county-level determinants of inbound FDI: evidence from a two-step modified count data model

We employ a two-step modified count data model to determine the county-leve l attributes that are conducive to attracting new foreign plants. Our estim ation results indicate that previous counts of foreign direct investment. m arket size and accessibility, and land area are positively related to Forei gn Direct Investment (FDI) occurrences; while higher input costs deter new foreign firm entry. Contrary to anecdotal evidence, our results suggest tha t stringent environmental regulations do not have a negative impact on EDI inflows. These findings have significant implications for policymakers, as Rows of FDI are expected to increase dramatically given the economic integr ation of our global economy. (C) 2001 Elsevier Science BN. All rights reser ved.