-This article focuses on the determinants of European FDI (foreign direct investment) in the Central and Eastern Europe countries (CEECs). Our estimation is run on a panel data set covering the 1993-1998 period. Our results show that wage costs differences between the CEECs do not affect the pattern of FDI contrary to wage differences between European Union (EU) member countries and the EU applicants. The human capital effect is sensitive to the construction of the education variable and to the sample. Finally, the market size, the geographic proximity and the privatization method explain a great part of bilateral FDI to the applicant countries.