The levels of restrictiveness of OECD countries toward foreign direct investment (FDI) have been progressively reduced over time and are low on average. Remaining variations are largely due to the limited group of countries which still maintain forms of general screening of foreign investments. Non- OECD countries adhering to the OECD Declaration on International Investment and Multinational Enterprises are in general as open as OECD countries. Other non- OECD countries such as China, India, South Africa and Russia have more extensive restrictions. Among the nine sectors covered by the index, the most restricted are electricity and transport and the most open are tourism, construction and manufacturing. The Index does not take into account a number of factors beyond statutory discrimination which have a bearing on inward direct investment flows. However, when combined with these factors, the index is a good predictor of FDI performance.