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Netherlands ranked among top nations for foreign investment

The Netherlands is the second-most attractive country in the developed world for foreign investors, according to a study by financial consultants KPMG.

Flying the flag: KPMG say The Netherlands is a good place to do business.Only the UK comes out more favourably in the analysis, which compares economic factors such as the cost of hiring labour, quality of education, innovation and infrastructure.

Two years ago, when the study was last done, the Netherlands was ranked second behind Canada, but the North American nation has fallen to third place, largely because of the high value of the dollar.

The Netherlands scored particularly highly on research and development, which is reckoned to be 13 per cent cheaper than in the United States.

However, all 14 nations classed as developed countries in the study were warned of the effect of high labour costs, which has allowed the likes of China and India to close the gap.

Employees make up between 55 and 85 per cent of the total cost of business in developed nations, compared to as little as 30 per cent elsewhere.