New evidences on FDI determinants during the transition period

While foreign direct investments (FDI) constitute an important source for the economic development of transition countries, the FDI distribution among these countries is highly inhomogeneous and indicates the presence of some decisive factors influencing the attraction of foreign investments. Our work identifies such factors and analyzes their role in the FDI attraction during the most intense transition period of former socialist countries. The model joins together some classical FDI determinants variables with variables reflecting the transition process. Surprisingly, the quality of the institutions seems irrelevant, showing a certain tolerance of foreign investors to a still weak institutional environment.