Features of Foreign Direct Investment in the Context of Globalization

Abstract

The authors of the paper describe the features of foreign direct investment (FDI) as one of the driving forces of globalization, and its most prominent manifestation. Discussion on the causal and consequential interrelations of globalization factors leads to the clear distinction of an assessment of globalization level and evaluation of the impact of globalization on economic development. Proposed selected indicators enable to carry out a complex assessment of the level of economic globalization considering FDI factor. An analysis of selected FDI indicators for assessment of the level of globalization of a small open country is carried out in a case of Lithuanian economy. The results of the study indicate the high level of globalization and dependence of Lithuanian economy on foreign capital. The level of globalization of a small open country is more affected on inward FDI in comparison with outward investment.

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