I next include a dummy variable, AFRICA, and test whether countries in SSA on the average receive less FDI relative to countries in other regions. AFRICA equals one if a country is located in SSA. The results reported in Column 2 indicate that the Africa dummy is negative and statistically significant. Furthermore, the adjusted ‚2 increases noticeably, indicating the importance of regional effect. The coefficient of the Africa dummy is interesting because it measures the average difference in FDI/GDP between an SSA country and a non-SSA country with the same levels of openness, infrastructure and return on capital. The results indicate that on the average FDI/GDP for a country in sub-Saharan Africa is about 1.3% less than that of a comparable country outside the region.