4.3.2.2. Average wage. Labor cost is also deemed to be important element in FDI determinants. The availability of a larger workforce and relatively cheaper wages is considered to attract more investment, while a higher cost of labor may dissuade investors. Average wage cost is also an indication of the purchasing power of the market. This would in turn attract the investors to capture the potential of the local market. This means that as long as the influence of the local market is larger than the rising cost, investors would continue to invest in the region. Therefore, the effect of labor cost could be ambiguous. In this paper, average wage of each region for each separate year is used to measure the cost of the workforce.