Abstract
The paper presents the results from the research on capital investment changes in the context of economic development in the Baltic States. Statistical data analysis and cross-correlation analysis were used. The research showed that the volatility of real GDP growth and real investment growth was very high in the Baltic States compared with the EU countries average during the period of 2000 ‒ 2011. Higher investment growth provides a higher economic growth, but it may be associated with higher volatility of investment and economic growth. The share of government investment was high in the Baltic States compared with the EU countries average, but the government investment did not have stabilizing impact on the economy because of the procyclical manner and high volatility.
Highlights
Scientific problem and novelty of the paper
The level of country’s competitiveness and development, as well as the country’s economic growth, depends on the growth of investment, private and government investment plays an important role in the economy of each country at macroeconomic and microeconomic level [18]; and there is consensus regarding this issue in the scientific literature
The research showed that real GDP growth rate was very similar in all three Baltic States but significantly higher than the average of the European Union (EU) (27 countries)
Summary
The level of country’s competitiveness and development, as well as the country’s economic growth, depends on the growth of investment, private and government investment plays an important role in the economy of each country at macroeconomic and microeconomic level [18]; and there is consensus regarding this issue in the scientific literature. According to [19], the GDP indicator has a positive relationship with private investment in the Baltic States and it is one of the key indicators of macroeconomic environment determining private investment behaviour. In this context, a more actual question is associated with investment volatility, its sources, and how investment volatility is related to economic growth and vice versa. The research methods: Analysis and synthesis of scientific literature, logic analysis and synthesis, analysis of statistical data, cross-correlation analysis
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
