I begin my analysis by determining the variables that are relevant in explaining the variation in FDI/GDP for my sample. I use ordinary least square (OLS) for all the estimations. The results are reported in Table 6. Columns (1)- (4) are results from cross-section regressions, where the variables are averaged over the 10- year period, 1988-97. Column (5) reports results for a panel regression. Here, the variables are averaged over three sub periods: 1988- 90, 1991-93 and 1994-97.