| Abstract [eng] |
There is no country in the World that would not have the relations with another countries. One such way is foreign capital investment in the country. With the growth of democratic republics and their economics getting more open the international relations are getting more popular as well as the foreign direct investment (FDI). The role of foreign capital is becoming ever greater for the development of economics. Foreign investment is thought to be one of the fastest ways to transfer technologies, without it the developing countries would have spent a lot of time to reach the level of technological excellence which developed countries had already reached in the Middle Ages. The problem of master thesis – it is necessary to attract FDI to the country, but the investment environment in Lithuania is still not sufficiently attractive for foreign investors. The aim of this research is to analyze the importance and the tendencies of foreign direct investment in our country, to evaluate the investment environment of Lithuania and compare it with other Baltic states, to identify problems faced by foreign investors and proposing solutions. Theoretical and legal aspects of FDI in this master thesis are considered basing on scientific literature analysis, while basing on other various statistical sources foreign direct investment trends in Lithuania from 1997 to the present days are analyzed. In this thesis also the SWOT analysis of investment climate of Lithuania is done as well as the results of experts’ survey of “Evaluation of Investment Environment of Lithuania by Foreign Investors” are analyzed and summarized. Furthermore, there are compared the investment environments of three Baltic’s states (Lithuania, Latvia and Estonia) and reviewed investment incentives in other European countries. Foreign direct investment remains one of the few alternatives to finance the country's economic recovery; however, lately the World is facing tremendous competition among countries for attracting investment. The countries seeking to carry out effective and focused FDI attraction policies must be able to compete, to highlight the advantages of the country. There are suitable investment opportunities in various industries and businesses in Lithuania, but there is a lack of motivating factors – additional incentives to investors. Without a clear financial incentive package Lithuania takes part in unequal competitive position for attracting FDI. |
