DETERMINANTS OF FOREIGN DIRECT INVESTMENT INTO THE CIS COUNTRIES AND EASTERN EUROPE

The aim of this paper is to identify the determinants of Foreign Direct Investment (FDI) into the CIS countries and eastern Europe in the period from 1995 to 2015. Complex characteristics are considered as possible determinants of FDI, including indicators of the quality of protection of property rights, country risk, quality of resources, openness of the economy, the return on investment. The most important explanatory variable of FDI is the level of GDP of the previous year. Investment decisions are taken differently for countries inside the EU and CIS.