Investment policy

OECD Reviews of Foreign Direct Investment: Lithuania

 

Since regaining its independence in 1990, Lithuania has undergone a remarkable economic transformation. By the end of 2000, this process had been greatly stimulated by the inflow of some US$2.3 billion in foreign direct investment.

FDI has contributed to green-field investment, mergers and acquisitions, as well as the privatisation of state-owned-enterprises. Creating favourable conditions for FDI has been a core element of Lithuania's economic strategy, and relatively few restrictions to FDI now remain.

FDI has also been encouraged by the prospect of EU membership, as well as Lithuania's accession to the World Trade Organisation on 31 May 2001. Among the remaining challenges are an early completion of privatisations, pursuance of liberalisation, and foreign competition for trade and investment. Top priority is being given to solving implementation problems resulting from the revamping of the old regulatory regime.

On 26 July 2001, Lithuania became eligible for adherence to the OECD Declaration on International Investment and Multinational Enterprises. This will help to consolidate Lithuania's achievements and expand its economic relations with OECD countries and other adherents to the Declaration.

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