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We study and compare the impact of tax indicators, described by Paying Taxes scores of Doing Business report, on two modes of FDI in equity capital- greenfield FDI and cross-border mergers and acquisitions (M&As). Then, we apply 25 percent improvement to each tax factor and evaluate this effect on inbound flow of FDI determinants. The study compares four methods-the ordinary least squares, random-effects, fixed-effects, and Hausman-Taylor models- applied to the panel data for one hundred sixty countries for the period from 2009 to 2017. The consummate range of Hausman-Taylor tools when applied to studies of panel datasets with time-varying, time-invariant and endogenous parameters of tax administration reveals the divergence among the factors appealing to M&A and greenfield investors. The study assesses the higher sensitivity of M&A to the factors of economic development, overall business friendliness and location of a potential host economy. The countries at the lower end of GDP per capita performance are more likely to attract foreign direct investments, if the message about the domestic reforms in tax regulations and administration targets greenfield investors.