Modern investment theory suggests that investment is one of the main policy variables to foster economic growth and maintain stability in an economy. It is therefore important to identify the factors affecting sector-specific investments in order to accurately formulate economic policies that aid in the growth of the economy. Considering this, the distinction between investment in the traded and non-traded sectors has to be clearly outlined since the former represents the prospects for foreign exchange. Hence, this paper seeks to identify the key determinants of investment in the traded and non-traded sectors in Barbados, over the period 1976-2009