Foreign direct investments and impact globalization on restructuring of Lithuanian economy

Abstract

Investigation let to reveal that in practice positive and negative impact of globaliza-tion is concurrent. Some inflows of foreign capital into the same sector of economy can be efficient from the point of view of host country, and some not. In transition countries negative result of globalization most probably will be traced in privatized monopolies. Generalizing Lithuanian case it should be stated that the highest level of globalization has been determined in trade, financial intermediation and industry. Performed economical analysis indicated that in Lithuania globalization of service sector positively impact economical growth. Nevertheless, separate capital flows into some activities belonging to service sector retard economic growth. The most positive effect has foreign investments into financial intermediation, and the most negative effect have been traced in sphere of communication. Globalization of industry sector doesn't have positive impact on development of economy of host country. Globalization process effects restructuring of national economy. Consider-ing results of performed analysis we can expect that in the future sector of financial intermediation will expand significantly. Despite overall effect of globalization is positive, government of transition country should more responsibly form privatization policy and place more empha-sis on "green field" investments.