Intra-Industry Trade and Foreign Direct Investments:The Case Analysis.

      Аннотация: This paper analyzed foreign trade pattern of Lithuania and foreign direct investment flows to country after re-creation of independence in 1990 when the main political and economical reforms took place. The country has successfully managed its transition towards a market economy. With a consistent program of structural reforms and comprehensive privatization, major results have been achieved. Although the country has been successful in reorienting its exports to new markets, notably the EU countries. Geography and the approach taken to dismantling central planning have ultimately driven FDI flows into Lithuania. The Lithuanian-EU trade liberalization agreements have helped the country to attract foreign investors. Such questions as which were the main factors of the change in export reorientation and why did trade flows increase with EU market were discussed in this paper. The question of the role of foreign direct investments in the pattern of these changes was discussed profoundly. Overall the main research question was to find which role foreign direct investments played in the changes of trade reorientation towards EU market during the transition process in Lithuania.

Ключевые слова: FDI, foreign direct investment, foreign trade policy, IIT, Intra-Industry Trade, new trade theory, Skilled Labor, Trade Barriers, Trade Liberalization, Inter-industry trade, Horizontal and vertical intra-industry trade, Neoclassical trade theory, Inter-relation between FDI and trade, Transition from Plan to Market Economy, Trade Liberalization and FDI, Foreign direct investment in Lithuania, Industry analysis in Lithuania, Intra-industry trade in emerging economy, Inter-industry trade in emerging economy, Technology transfer through foreign direct investment, Imports – exports with EU, Trade in good and services, Privatization process, FDI in manufacturing, FDI in Lithuania, Technology intensive, Labor intensive industries, Medium low-tech industry, Medium high-tech industry