| Bibliographic Citation : | In this Master dissertation, we examined the effects of specific macroeconomic variables of the host country on the FDI flows towards this country. We also analyzed the impact of crisis on these effects. The empirical examination was conducted with both pool OLS and Fixed Effects estimation, while we included two alternative crisis period definitions, i.e. 2007-2008 and 2007-2009. We found no empirical evidence that population growth affects FDI inflows whatsoever. Inflation, GDP per capita, trade openness, and inward FDI stock level found to affect FDI inflow regardless the choice of the crisis period, but results vary with the estimation technique indicating severe bias and inconsistency if appropriate model is not chosen. GDP growth was, also, found to affect FDI inflows and this finding is robust to the definition of the crisis period and to the estimation technique. Finally, we empirically documented that indeed during the global financial crisis a structural break occurred in the relationship between FDI inflows and its determinants; this finding is, also, robust to the definition of the crisis period and to the estimation technique.
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