THE RESEARCH OF DIRECT FOREIGN INVESTMENT DISTRIBUTION BY INDUSTRY AND GDP IN THE BALTIC COUNTRIES

Foreign direct investment is one of the most effective means of stimulating economic growth, it is very important for small developing countries. The article analyzes the impact of foreign direct investment in the Baltic economies. Distinction is made between the most popular sectors that attracted maximum investment flows: a financial intermediation sector, manufacturing, real estate, renting and other business related to the following activities; wholesale and retail trade sectors. The analysis of FDI in the Baltic countries by economic activities cover the gross domestic product of the analyzed sectors they create, and then the correlation analysis assessed the strength relationship and communication between foreign direct investment and economic activities in the Baltic countries. The results showed that the majority of investors to attract manufacturing, wholesale and retail trade, financial intermediation, real estate, renting and related business sectors. According to accumulated investment to GDP ratio leads Estonia, Lithuania was the last among the Baltic countries. In all Baltic countries, the strongest correlation between foreign direct investments linked to the financial intermediation sector. DOI: https://doi.org/10.15544/ssaf.2012.1