Manuela Tvaronavičienė

Department of Business Technologies and Entrepreneurship, 

Vilnius Gediminas Technical University, Lithuania;

General Jonas Žemaitis Military Academy of Lithuania

manuela.tvaronaviciene@vilniustech.lt 

ORCID 0000-0002-9667-3730

Review of studies on FDI: The case of Baltic States

Arūnas Burinskas

Department of Business Technologies and Entrepreneurship, 

Vilnius Gediminas Technical University, Lithuania;

Faculty of Economics and Business Administration, 

Vilnius University, Lithuania

arunas.burinskas@vilniustech.lt 

ORCID 0000-0001-6053-9495 

Abstract. The authors reviewed the foreign direct investment in Baltic countries. The theoretical part of the paper systemizes essential driving forces (elements) of FDI studies and the methods most common in FDI studies; the hierarchy of qualitative methods and models is presented. Three-tier methodology is suggested. The first tier (or level) represents a mathematical approach towards interconnections between FDI variables. The second tier of methodology is dedicated to sector analysis and benchmarking. The third tier targets revising economic variables and their links with variables representing FDI. The suggested approach could be applied for similar analysis. The authors have constructed a correlation matrix. The results of the analyzed variables via the dynamic regression approach show that the strongest links among variables appeared in several-year periods. The obtained results may have significant policy implication.

Received: April, 2021

1st Revision: March, 2022

Accepted: June, 2022

DOI: 10.14254/2071-8330.2022/15-2/14

JEL Classification: E22, F21, O16

Keywords: FDI, driving forces (elements), three-tier methodology, quantitative methods, Baltic States