The aim of this study was to examine how: absence of corruption, natural resources, level of democracy, GDP per capita, infrastructure and openness affect the inflow of FDI to the post Soviet and post Yugoslavian states. A “dummy” variable was added as well, to examine if there was a difference in the FDI inflow between the countries with membership in the European Union and the other countries. A cross-sectional analysis between the years 2004-2014 was adopted in addition with a regression analysis and the OLI-framework. The result of the study signifies that BNP per capita, natural resources and absence of corruption was the variables with the strongest significance. BNP per capita had a negative correlation with the FDI inflow, while natural resources and absence of corruption showed a positive correlation. Based on this result the study concludes that vertical FDI appeared to be the most common form of foreign investment to the countries in the study. Moreover, the “dummy” variable did not show any significance. Although, it could not be determined if the countries with membership in the European Union had a higher inflow of FDI compared with the other countries in the study.