Review of Approaches Towards FDI: Driving Forces and Plausible Consequences

Manuela Tvaronavičienė, Kristina Kalašinskaitė, Agnė Šimelytė


The article analyzes the impact of FDI on economic growth and development of a host country in various conditions. Different sets of driving forces characteristic for certain stages of development of FDI receiving country are being considered. As the final aim of the critical analysis of contemporary theoretical and empiric findings the authors see the discovery of consistent patterns.
Several FDI theories are reviewed in the article. The effects of FDI in developing countries are especially highlighted. The disparity between theoretical and empirical findings is taken into account: negative and positive aspects of FDI impact on countries that are on the path of development are revealed and interpreted.
The authors conclude that the nature of the effects of FDI is mainly determined by specific characteristics of the developing countries, such as market structure, level of capital attainability and its absorptive capacity and others. Together with the development of the recipient country, FDI driving forces and outcomes transform.


social science fields; management and administrative direction; foreign direct investments; FDI factors; FDI effects; transition countries

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"Societal studies" ISSN online 2029-2244 / ISSN print 2029-2236