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The Effect of Fixed Investments on Lithuanian Economy

In: Eurasian Economic Perspectives

Author

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  • Lina Martirosian

    (Vytautas Magnus University)

Abstract

Aim of the research is to provide the theoretical backgrounds for significance of fixed investments, to estimate the changes of fixed investment growth and structure and to explore the efficiency of fixed investments and it impact on Lithuania economy. The research show that the level of investments in Lithuania was 21–29% from GDP in 2001–2008. Over the last 7 years (2011–2017), investments amounted to 19% of GDP on average. The growth of investments after the financial crisis is especially high in equipment sector. It is noticeable that many Lithuanian businesses still hesitate when it comes to making important investment decisions. Firstly, uncertainty in the market causes troubles in evaluating future changes of products and services demand. Secondly, companies seek to accumulate own funds to implement investment projects in order to avoid credit liabilities.

Suggested Citation

  • Lina Martirosian, 2020. "The Effect of Fixed Investments on Lithuanian Economy," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir (ed.), Eurasian Economic Perspectives, pages 107-119, Springer.
    • Handle: RePEc:spr:eurchp:978-3-030-53536-0_8
    DOI: 10.1007/978-3-030-53536-0_8
    as

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