ABSTRACTThis study analyzes determinants of net foreign direct investment (FDI) inflows in emergingeconomies between 1978 and 1995. Its theoretical framework is based on the concept ofInstitutional FDI Fitness, developed by the author Saskia Wilhelms. Grounded in integrativetheories of foreign direct investment (FDI), the Institutional FDI Fitness theory stipulates that FDI isdetermined less by intransigent fundamentals than by institutional variables more amenable tochange, namely policies, laws, and their implementation. The four institutions contributing to FDIFitness are government, markets, education, and socioculture.