Introduction
Foreign Direct Investment (FDI) Confidence Index is published and released by A.T. Kearney, a global management consulting firm. The Index is the result of a survey where major businesses around the world are asked how likely it will be that they will be investing in any particular country the following year.
The 2012, A.T. Kearney FDI Confidence Index examines future prospects for FDI flows as the world seeks to recover from the global recession and continued economic uncertainty in Europe and the United States. The Index, which first appeared in 1998, assesses the impact of political, economic, and regulatory changes on the FDI Intentions and preferences of the leaders of top companies around the world.
Methodology
The FDI Confidence Index is constructed using primary data from a proprietary survey of senior executives of the world’s leading corporations. Respondents includes C-level executives and regional and business heads. Participating companies represents 27 countries and span 17 industry sectors. Together, the companies comprise more than $1 trillion in annual global sales. The survey was conducted between July and October 2011.
The Index is calculated as a weighted average of the number of high, medium, and low responses to questions about the likelihood of direct investment in a market over the next three years. Index values are based on non-source-country responses.
Since the inception of the FDI Confidence Index in 1998, the 10 most attractive FDI destinations have consistently received 50 percent or more of global FDI on flows roughly one year after the survey. Over the same period on average, the top five countries captured 35 percent of global FDI inflows.
Overall Performance
The world's developing economies comprise more than one-half of the Index's top 25 countries, indicating that flows to these regions will accelerate as investment picks