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ii The role of foreign direct investment (FDI) in economic growth is well documented in the literature. Various studies have established that FDI contributes both directly and indirectly to economic growth of the host country, especially, in the developing countries. Despite the proven benefits of FDI to developing countries, Africa continues to account for less than six per cent of the global stock of FDI. To uncover why developing countries (especially countries in Africa) are less attractive to inflow of FDI, a number of studies have been conducted. In most of those studies, the role of macroeconomic fundamentals is presented as the major hindrance to the developing world in attracting FDI. However, the fact that some developing countries (particularly in Asia and South America) falter on these considerations and still manage to attract inflow of FDI begs the straightjacket validity and appropriateness of those postulations. This new line of thought motivates the interest in looking at other set of variables that are capable of influencing the attractiveness of countries (especially developin