This study aims to find out potential macroeconomic causal factors of FDI flows into Ethiopia quantitatively to signalize analytical and policy arguments. Annual time series data on our dependent variable FDI inflows, and control variables: exchange rate, inflation rate, access to electricity, trade, control of corruption, and GDP growth, over the years, 1992 to 2016 are used. Appropriate functional form are established and variables are analyzed using Unit root test, Co-integration and Vector Error Correction Model (VECM) and checked for validity of the estimate using OLS and estimates of first difference. Unit root tests revealed that, variables are non stationary at level and stationary at first difference. Also Johansen's test found that variables are cointegrated. We found significant and negative relationships between our dependent variable, and exchange rate in Ethiopia, and also a significant and positive relationship existed between inflation rate and FDI inflows. The coefficient of lagged error correction term was found significantly negative (-0.8993499), indicates that variables are adjusting to long-run equilibrium at an incredible speed of about 89.93 per cent per annum representing the existence of long-run relationship amongst variables. The negative relationship of exchange rate insights that depreciation of the local currency would attract greater FDI flows into the country. These findings insight that trade with the rest of the world, creating stable macroeconomic conditions, major improvements in transport services, as well as anti-corruption surges are essential to attract FDI flows into Ethiopia. The study recommends among others, that government should revise, formulate and implement policies that would increase trade facilitation, should keep in mind while devaluating the national currency (depreciation without exporting more becomes a burden to the economy of a country) to attract more FDIs.