A Closer Look to the Foreign Investments in the Netherlands

This paper tries to investigate the drivers of foreign investors to invest in the Netherlands. There is a lot of literature about determinants of Foreign Direct Investments (FDI), and this literature is used in the paper. Determinants from this literature, together with new determinants from this paper are tested for the Netherlands in eight different sectors. The results are that the size of the market, the labor productivity, the capital-labor ratio, the wage level and the expenses for research and development in sectors, all have impact on the level of FDI stock in the sectors.