ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2008
  • © Brno University of Technology, 2002-2008
  • © University of Latvia, 2002-2008
Regional FDI in Lithuania, 1996-2003
Gregory Brock, Sigitas Urbonavičius

ABSTRACT. Foreign Direct Investment (FDI) in to the 10 counties of Lithuania is analyzed for the first time using new regional data now available for this small transition economy. At the county level, Lithuania appears to be exhibiting export led growth which is increasing business and household incomes despite a substantial number of workers leaving the country. As Lithuania’s cheap labor advantage disappears because of competition to the south and east, laws and institutional reforms driven by EU accession will be key to retaining FDI inflow momentum. New proposals from Brussels such as a European “green card” may allow Lithuanian workers to more easily return home as well.

KEYWORDS: FDI, counties, regional economics, Lithuania.

JEL classification: F3, P25, P2.

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Scholarly papers Transformations in Business & Economics
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Vilnius University
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