The primary aim of the paper is to estimate the influence of economy restructuring process on investment activity in Latvia. The heterogeneity of the investment processes in Latvia is analyzed at both sectoral and regional levels for the period of 1997 - 2004 identifying the main factors that influence the heterogeneity of the distribution of investment resources. Based on the analysis, conclusions about the efficiency of investment in different sectors of Latvian economy are made. Also the peculiarities of sectoral structure of foreign direct investment stock is analyzed to bring out the conclusions about the possible influence of foreign direct investment inflows on the domestic investment processes in Latvia.