The purpose of the paper is to analyse the dynamics of Austrian foreign direct investments (FDI) and its role in the development of the national economy. The subject of research is the main components of Austrian foreign direct investments 2005-2017 and their impact on the national economic development. Methodology. Methods of comparative and statistical analysis were used to study the dynamics, structure, and economic impact of Austria's FDI. Special attention was given to the dynamics of FDI inflows and outflows, accumulated investments, cross-border mergers and acquisitions, "Greenfield Investments", the impact of FDI on the balance of payments and international investment position of Austria. The method of mathematical modelling in economics, in particular, regression analysis, based on annual data for the period from 2005 to 2015, was applied to assess the relationship between the main components of foreign direct investments and the indicator of the country's economic growth the gross domestic product (GDP) per capita. The following indicators were selected as independent variables: FDI liabilities, assets of FDI funds, as well as the balance of primary incomes. The dependent variable was the GDP per capita. It should be noted that such indicators as FDI assets and liabilities of FDI funds were not represented in the final model because of the high correlation between independent variables, and the relationship between GDP per capita and net foreign assets was insignificant. The assets of foreign direct investment funds have the greatest impact on the economy of the country, and the relationship between these indicators is direct. A slightly weaker relationship is observed between the balance of primary incomes and GDP per capita. The relationship between them is also direct. Liabilities of FDI have the least impact on the dependent variable in comparison with the other two. Findings. The growth of foreign direct investments of Austria, as a result of liberalization of the world and European economy, as a whole has a positive impact on its GDP. Thus, activities that are aimed at stimulating investments are fully justified and understandable. The paper determines important factors of Austria's investment activity and attractiveness, as well as the main factors that influence the dynamics of FDI. The most important among them are: the level of education, the internal coefficient of investment, political stability, the terms of trade, the state of the financial sector. The results of the analysis show that Austria has a high level of business activity; the government conducts activities to stimulate investment in R&D and in high-tech enterprises, to create new jobs, to protect the environment etc. The results of the study allow forecasting a gradual improvement in the balance of the country's primary incomes, which will contribute to the further growth of the current account surplus and will strengthen the positive influence of Austria on the development of the European and global financial systems. Practical implications. The results of the study will help to increase: the effectiveness of the investment policy of Austria to stimulate the country's economic growth; the international competitiveness of national companies on European and world markets; the level of stability of Austria's financial system to external shocks.
