Manuela Tvaronavičiene

Estimation of sustainable development: Germination on institutional level

The aim of the paper is to investigate approaches to measurement of sustainable development adopted by international organizations, or institutions. Organizations for sustainable development were founded to review progress at the international, regional and national levels in the implementation of sustainable development policy, to take part in legislative process, to control balance between economic development, social development, and environmental development. Valid systems and classifications of sustainable development are being juxtaposed, specific features, advantages and disadvantages revealed. The question, if the systems of indicators provided by considered institutions are applicable for practical analytical purposes, is being raised.

Impact of FDI on Lithuanian economy: Insight into development of main economic activities

Abstract Aim of the paper is to estimate impact of foreign direct investment (FDI) on growth of economy in Lithuania. In order to detect specifics of development of main economic activities, differences in structure of FDI and structure of GDP of host economy are being juxtaposed, FDI intensity indicator in main economic activities elaborated. Authors test if different levels of penetration of foreign capital into certain economic activities serve as important factor affecting their economic growth. Research is being developed further by making assumption about higher concentration of FDI intensive economic activities. Higher concentration in that context would be interpreted as possible crowding out of local business firms from FDI intensive industries.

Role of fixed investments in economic growth of country: Lithuania in European context

The paper aims to detect character of relationship between fixed investments and economic growth in Lithuania and predict plausible tendencies of further change of considered variables. In order to achieve the indicated task, authors concentrate themselves on two major questions. Firstly, quantitative relationships between investments into major areas of economic activities and Lithuanian economic growth are being estimated. Secondly, comparative analysis of Lithuanian pattern of investment and randomly taken developed European country is being performed. Authors seek to trace how the latter invested during its process of development. Concrete period of observation is being chosen taking into account the current level of Lithuanian economic development. Authors seek to trace plausible consistent patterns of development in terms of relationship between fixed investments and economic growth as countries develop. Obtained results might allow identifying the role of fixed investments, and, if to go further, facilitating forecasts of possible trends of fixed investment and corresponding economic growth.

Approach to innovative activities by Lithuanian companies in the current conditions of development

Abstract The paper aims to reveal the approach of Lithuanian companies towards innovations. In order to take into account conditions, specific to the considered country an, overview of Lithuanian economy with a closer look at demographic and employment tendencies is presented; analysis of statistically estimated innovation performance and state innovation policy performed. Insight into factors driving innovations into Lithuanian business companies is being made through questioning the randomly chosen 1001 Lithuanian business companies. The performed survey allows us to disclose how companies react to factors fostering and restricting innovations, how they perceive role of state policy in the process of innovative activities. Obtained results provide us with empirical evidences how business companies react to specific economic conditions, and if there is a sufficient correspondence between educational system and supply of know‐how susceptible employees demanded by business companies.

If institutional performance matters: Development comparisons of Lithuania, Latvia and Estonia

Presented paper aims to estimate and compare sustainable development processes in Lithuania, Latvia and Estonia after the European Union accession. Data embracing the 2004--2008 period is being analysed. Authors take into account that different approaches to countries’ development assessment might affect their comparison results. In order to obtain a multi‐faceted view, several variants of sustainable development estimations of Lithuania, Latvia and Estonia are being performed. Each variant represents a different approach to development perception. The difference lies in emphasis, which is being put on economic and institutional aspects of development. Juxtaposition of development estimation variants is expected to reveal range, within which the resulting index fluctuates and impacts ranging of countries. Integrated complex countries’ development index is computed by using multi‐criteria method. Authors of the paper compose a system of indicators, which is being employed for research purposes. Corollaries of investigation let us judge how much Lithuanian, Latvian and Estonian ranking according to estimated development level differs due to variations of approaches applied, and how sensitive calculations are to institutional performance and current economic downturn.

Foreign capital destinations: Baltic States versus India

The presented paper aims to elaborate which factors have the biggest influence on investment decisions while choosing between India and the new EU members ‐ Lithuania, Latvia and Estonia. For analysis purpose the Baltic States have been juxtaposed to India, as the latter represents emerging market, and, according to almost unanimous prognosis, is one of the main FDI destinations for the nearest future. The Baltic States are considered as attractive recent entrants of the EU demonstrating high growth and representing new unsaturated market. FDI inflows into those rather different countries started in approximately 1991, thus driving forces behind international capital movement serve as object of scientific interest. The data retrieved and used for considerations embraces period from 1999 to 2008. Authors ground premises about significance of certain sets of driving factors and use multi‐criteria evaluation methods to indicate driving forces determining propensity to invest into the Baltic States’ region and India. Results of speculative analysis are supposed to add to better understanding of contemporary investment behaviour of well‐developed economies.

If approach to innovations differs in locally and foreign owned firms: Case of Lithuania

Presented paper aims to reveal differences, if any, in innovative behavior of business firms containing foreign and not foreign capital. Innovative behavior in that case is being characterized by scale of investment into research and development, self‐financing pattern and business strategy undertaken by various firms. Juxtaposition of business firms operating in the same economy field but having different ownership origin ‐ local and containing foreign capital ‐ has been performed. Results let us identify differences in approach to innovative activity stipulated by presence of foreign capital. Tendencies obtained in Lithuania plausibly might have been verified in other less advanced European countries in order to check if a consistent pattern could be admitted.

Factors affecting securities prices: Theoretical versus practical approach

Securities market has been influenced by entirety of factors, which roughly could be divided into various groups. In order to show complexity of phenomenon authors strive to overview theories of stock price behaviour. Taking into account, that various authors present rather controversial empirical evidences of certain factors impact on stock’ prices, authors of this paper try to test some relationships practically. Statistical analysis aiming to evaluate quantitatively the dependence of stock index on some chosen statistically measurable factors is being performed. For the latter purpose stock prices of Lithuanian companies and such macroeconomic variables as foreign direct investment, state budget revenue and expenditure, gross domestic product, price index of consumer goods and services, money in a broad sense, average profitability of governmental bonds and inflation have been employed.

Inward and outward FDI in Lithuania and Estonia: Review of patterns in neighboring countries

The paper aims to trace how important state policies, cultural differences and neighborhood of developed countries are as driving forces attracting foreign capital inflows. Authors overview the inward and outward foreign direct investment (FDI) tendencies in Lithuania and Estonia, reveal similarities and differences of the neighbor countries. Authors distinguish and discuss a role of privatization policy in attracting foreign direct investments. The assumption about different inward FDI sources caused by different privatization strategies adopted by considered countries is to be elaborated. Another focus of presented paper is outward FDI structure in terms of capital origin, and differences of its in scale in two Baltic countries ‐ Lithuania and Estonia. Phenomenon of Scandinavian FDI channeling through Estonia is to be traced and interpreted.

Tax evasion through offshore companies: How important the phenomenon is?

The aim of the paper is to elaborate phenomenon of offshore activity. In the article principles and conditions of offshore companies’ performance have been discussed and the most popular areas of offshore economical activity analyzed. Authors’ view to efficiency of Lithuanian governments attempts to restrict usage of offshore zones has been presented.