INTELLECTUAL ECONOMICS 2007, Number 1(1)Margarita Starkevičiūtė
THE BENCHMARKS OF LITHUANIA‘S ECONOMIC INTEGRATION
Mykolas Romeris University Publishing Centre. Vilnius. Lithuania 2007 Nr.1(1), p. 82-86
In the past several years, the ten new Central and Eastern European members of the EU have enjoyed
rapid growth but frequently alongside growing external imbalances. Economists have pointed to rising vulnerabilities,
but markets express a positive view about the potential of these countries which is seen from compressed
sovereign bond yields. The latest IMF study finds that the EU membership is a key factor behind a favourable
treatment of CEE countries, including Lithuania, by markets.
Scientists single out two types of integration – integration incited by technological progress, when sustainable economic growth is achieved because of the acceleration of technological progress, and integration incited by the growing contribution of capital, when heavier investment determines bigger production and, in its turn, heavier investment again. In projecting its economic policy as a member of the EU, Lithuania focuses a lot of attention to the implementation of large-scale infrastructural projects, emphasising the investment potential of the growth of the integration process. The experience of the period of domestic economy restructuring has, however, revealed that investment as such does not set preconditions for a consistent economic growth. Consistent economic growth is only attainable with a constant increase in economic efficiency. Rational use of EU support can be defined as an outcome of the application of new knowledge. A stable, outward-oriented and competitive macro-economic policy setting, a solid knowledge base, well-functioning institutions, an environment conducive to global learning and a competitive environment for the generation and diffusion of new technologies are some of the necessary conditions for sustained growth. This article reviews the sources and determinants for integration driven long-term economic growth in Lithuania.
Keywords: economic integration, integration influenced growth, knowledge-oriented macropolicy.