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.