Australia is keen to attract more foreign investment with a new report saying that the country is an excellent place to do business.

The 2014 Austrade Benchmark Report presents Australia's attractiveness as a business and investment destination using key economic, financial and demographic data.

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Australia is the 12th largest economy in the world and fourth largest in the Asia region​

Australian Minister for Trade and Investment, Andrew Robb, said that it will assist potential foreign investors to evaluate Australia's economic credentials against similar economies and to understand the investment opportunities Australia presents.

'Strong economic fundamentals combined with our proximity and experience in working with high growth Asian nations, make Australia an excellent place to do business,' he pointed out.

'Our educated, multicultural and multilingual workforce, world class research institutions and generous R&D tax incentives make Australia an attractive investment destination,' he added.

The report says that with a GDP of US$1.5 trillion, Australia is the 12th largest economy in the world and fourth largest in the Asia region.

It also points out that Australia's proximity and strong economic and cultural ties with Asia make it an ideal base for expansion in the region and 10 of Australia's top 12 export markets are in Asia.

Australia is described as a leader in five key global growth sectors: education, resources, agriculture, tourism and funds management and as having the third largest pool of investment funds under management.

The country is also a major supplier of agricultural and mining commodities. In addition, Australia ranks in the top five global destinations for international students and inbound tourism is growing strongly.

'Ongoing growth is in large part due to Australia's connectivity through trade, investment and cultural links with the fast growing Asia-Pacific region,' the report summary says.

'Combining this with well-established links with Australia's traditional trading partner nations and the country's status as one of the world's most transparent and well regulated business environments, means Australia is a great place to do business,' it adds.