When the investors decide to make a foreign direct investment, they take various factors into consideration such as political risk. In the study that covers the years 2002-2012 and data from 91 countries, the impact of political risk on foreign direct investment has been demonstrated by conducting panel data analysis. Political risk and control variables have been used. An increase in “political stability and absence of violence” and “management effectiveness” has reduced the foreign direct investment. Moreover, a rise in the variables of the “exportation of goods and services”, “population”, “GDP growth”, “regulatory quality” has increased the foreign direct investment.