Regulation and promotion of foreign direct investment in the Baltic States: tendencies, advantages, and problems

Abstract

The article analyses regulation and promotion of foreign direct investment (FDI) in Lithuania, Eston ia and Latvia. There are given comparison of the main legal documents regulating the attraction and policy of FDI and differences in defining of country's image in each of the Baltic States. Also, the article provides detailed analysis of the Baltic States highlighting features that are promoting and restricting foreign direct investment. A common feature distingu ishing the Baltic States from the other EU member states is a cheap skilled labour force. This factor increases the competition between Lithuania, Latvia and Estonia. However, such small economies must offer for investors much more than cheap skilled labour force as labour costs has been rising since all three Baltic countries joined the Euro zone.