Abstract
The aim of this paper is to provide some assessment of the Foreign Direct Investment (FDI) prospects of the two transition countries acceded to the EU on January 1st, 2007, namely Bulgaria and Romania. In particular, it would attempt to assess the main FDI determinants for these countries after accession. Wage differentials between the two newly acceded countries and the EU-15 average in an environment of increasing trade integration with the EU-15 proves to be the primary reason of FDI entry to both countries. The privatization process and domestic demand play also important role. Some implications for the future prospects of FDI inflows to both countries are also drawn.
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