Ontario, Canada continues to be an FDI leader in North AmericaJune 11, 2013
Ontario, Canada continues to far outperform its competitors as the number one jurisdiction in North America in attracting foreign direct investment (FDI) projects per capita amongst major states and provinces according to a new report from fDi Intelligence, a division of Financial Times.
Although global levels of FDI last year suffered the second biggest decline since the global economic recession, Ontario attracted a total of 123 FDI projects, the third largest number of projects in North America according to fDi Report 2013, an annual report recapping investment trends for the previous year.
Only California and New York, which have larger populations, ranked higher with 205 and 146 projects, respectively. Texas and Florida, the U.S. states behind Ontario in the ranking, which also have larger populations, had 116 and 66 projects, respectively.
Top 5 Destination States/Provinces in North America in 2012
Source: fDi Report 2013, Statistics Canada and U.S. Census Bureau
Last year most provinces and states experienced a decline in FDI, including Ontario. However, the province continues to maintain its share of total FDI projects.
Due to global economic uncertainty, FDI flows across the world were in decline in 2012, with only a few countries recording growth in inward FDI, including Chile, Spain, Indonesia, Poland and Oman.
The report also shows that multinational enterprises minimize their tax burden through overseas operations, underlining the strong link between corporate tax rates and FDI. The combined federal-provincial corporate tax rate in Ontario is 13 percent lower than the average corporate tax rate in the U.S.
Multinational enterprises are also drawn to the province because of its stable and growing economy, highly skilled workforce, culture of innovation, proximity to market and free trade agreements, competitive business costs and world-renowned quality of life.