The Effect of Investment Promotion on FDI Flows: a Case of the Baltic States

The article explores the effect of investment promotion on FDI flows in the country. The first part of the article analyses scientific literature on the interconnection between investment promotion and determinants of FDI. Three Baltic States have been chosen for the purpose of empirical analysis. Three main tools for investment promotion are highlighted. In order to determine the impact of FDI determinants on FDI flows and the role of investment promotion among them, three multiple criteria methods are used. The conducted analysis has confirmed the theoretical statements that investment promotion influences FDI flows and has a strong effect on FDI on the condition that investment promotion is fully introduced