Foreign  direct  investments  (FDI)  are  considered  to  be  an  important  element  of  economic integration towards the market-oriented capitalist economies. The purpose of the paper is to find the main determinants of FDI in the Baltic States that stimulate the successful transition. In order to achieve this goal, various determinants that were used in the former studies were examined by two econometric models. The first model investigates the panel data for seven chosen  Central  and  Eastern  European  Countries  and  the  Baltic  States,  including  dummy variable for the Baltic States. The second model examines panel data for the Baltic States. Both models  investigate  the  period  of  1996-2013.  Agglomeration  effect,  market  size,  and  labour costs are found to be significant determinants by both models. According to the results of the models,  the  economic  growth  and  macroeconomic  stability  indicator  has  an  unexpected negative  influence  on  FDI  inflows.  Legal  efficiency  is  significant  just  in  the  first  model. Infrastructure  and  trade  openness  was  found  to  be  significant  just  for  the  Baltic  States.  A negative and highly significant dummy variable detected a different nature of the Baltic region from other CEECs. The findings highlight the importance of institutional authorities’ actions to increase the attractiveness of the region through understanding of the different nature of the region and implementation of certain essential policies.