The results reported in Column 1 of Table 6 indicate that a large share of the variation in FDI rate can be explained by a small number of factors, namely, openness to trade, infrastructure development and the return on investment. As a group, these factors account for about 60% of the variability in FDI/GDP. Indeed, the adjusted ‚2 is very high for a crosscountry regression. The results also show that FDI/ GDP increases with the degree of openness to international trade, infrastructure development and the return on investment. 14 These results are consistent with previous studies.