More than $1 trillion is pumped around the world in foreign direct investment each year, a country's share of which is sometimes thought to signify its value and potential to the world.
Investors are drawn to what they don't have. The things that make a country unique -- its people, environment, relationships, framework and teachings -- create four distinct factors identified in a report by the World Bank Group that motivate an individual or corporation to invest in that country: natural resources, markets, efficiency and strategic assets like technologies or brands.
The 2017 Best Countries rankings, formed in partnership with global marketing communications company Y&R's brand strategy firm, BAV Consulting, and the Wharton School of the University of Pennsylvania, asked more than 21,000 survey participants from four regions to associate 80 countries -- up from 60 last year -- with specific attributes.
The Best Countries to Invest In are ranked based on scores primarily from more than 6,000 business decision makers on a compilation of eight equally weighted country attributes: corrupt, dynamic, economically stable, entrepreneurial, favorable tax environment, innovative, skilled labor force and technological expertise. Countries that business decision makers favored more heavily than all other survey participants did in these factors placed higher in this ranking.
Malaysia is the clear front-runner in this ranking, scoring at least 30 points more than any other country on a 100-point scale. The country is one of the top recipients of foreign direct investment, and its pro-business government offers a wide range of incentives to investors.
Other countries at the top of the list, like No. 2 Singapore and No. 6 India, typically have a younger, educated population. The majority of their citizens can provide the type of skilled work that the labor market demands at competitive wages and continue the cycle by contributing to the country's consumer market.