FOREIGN DIRECT INVESTMENT AND LITHUANIA'S INTEGRATION INTO EUROPEAN UNION

Presented paper aims to estimate and compare foreign direct investment (FDI), as the largest physical capital flows across national borders, tendencies in the world and in the European Union (EU) in the last decades of economic development. The research shows that as different countries become more developed they have expanded FDI in geographic areas that have economic growth potential, including emerging economies. In this aspect FDI and EU enlargement, intra-EU capital flows and tendencies of relocation of jobs and links between foreign and domestic firms in old EU-15 member states and new EU-10 member states are analyzed.