ABSTRACT
Introduction: Foreign Direct Investment into Estonia Foreign direct investment (FDI) constituted 10-25 percent of annual capital formation in Estonia during 2000-14. During the last two years of the analyzed period, capital inflows decreased substantially, the main reason being that Nordic banks, which were important investors into Estonia, moved a large amount of their capital out of Estonia in 2013 and 2014, depleting the large inflows of earlier years. Figure 8.1 presents data on total FDI inflows into Estonia as well as FDI from Russia for the period 2000-14, by which time the amount of annual Russian FDI flows into Estonia had risen to €114 million.1 The larger relative importance of Russian FDI in 2013 and 2014 had much to do with the substantial decrease of FDI from the Nordic countries.
