This paper analyzes the impact of financial openness and banking stability on foreign direct investment inflows as a share of GDP. This research question is explored in a sample of 151 countries from 2000 to 2017 in both the full sample and then the samples split based on high versus low-income status. The results overall provide support for my hypothesis that a country with greater financial openness and greater banking stability will experience higher foreign direct investment inflows as a share of GDP. Specifically, I find that financial openness is only significant when the sample is split between high and low-income countries and has a positive relationship with FDI inflows as a share of GDP. Financial openness is more consistently significant for low-income countries than high-income countries. For banking stability, I find that it has an overall positive relationship with FDI inflows as a share of GDP. The banking stability variables are more consistently significant for high-income countries than low-income countries.