Driving factors and implications of foreign direct investments were widely discussed during the latest decade. Anyway, impression remains that due to the specifics of that type of investment, misinterpreting of their economic composition is rather frequent than rare. Hence, the paper starts with detailed classification of investment types. The next part of the paper is devoted to a review of approaches to FDI driving factors and outcomes. Finally, current trends of foreign capital flows in Lithuania, Latvia and Estonia are being observed and evaluated. Novel insights about new consistent patterns of foreign capital directions are being provided. The paper is being finalized by indicating contemporary implications of FDI withdrawal for host country related to its further secure and sustainable development.
The internationalization practice of the financial institutions has been intensively studied since the 1960s. Due to the increase in international capital flows, foreign direct investments and international trade at that time active development of international or cross-border banking began. At the moment the world is undergoing a very complex process with a high uncertainty in the global banking and financial markets. This article focuses on the banking sector development and some aspects of management of commercial banks in Lithuania and other two Baltic countries. The main subject of the paper is to comparatively analyze the inwards and outwards development in the international banking. The main stress is oriented to aggregated credit enlargements in the Baltic States during the period of the first decade in the 21st century. Commercial banks during the last global economic crisis have been looking for a possible optimization of activities and consequent changes in their networks could be an option for its development assessment. However, the priority could be to identify the cross-border international credit expansion in the Baltic countries. On the other hand, these activities are relied to the countries’ macroeconomic indicators and mainly to the accumulated money supply. There is a scientific self-determination described in this paper in line with the analysis identifying the particular Baltic countries in the dynamics of accumulated deposits and credits of international banks. Subsequently it increased the growth of money supply. Nowadays banks are required to make sensible strategic decisions in order to keep sustainable banking businesses in the future. However, influences of the financial institutions to the global economical recession affect international banks creating negative feedback to their previous problems.