Alina Grynia

The diversity of tax systems in the EU encourages tax competition, which generally means providing foreign investors with better and more convenient solutions. National business may also consider the possibility of relocating to another country that offers better conditions for doing business, for example through lower tax burden or tax preferences. The purpose of this article is to assess the Lithuanian tax system in terms of its competitiveness compared to other tax systems in the European Union taking into consideration the amount of the total tax burden, nominal and real rates of corporate income tax, and pro-investment tax credits. The competitiveness of the Lithuanian tax system is also verified by an assessment of friendliness to entrepreneurs based on the Paying Taxes reports.

The following paper is an attempt to examine the conditions under which business is carried out in Lithuania. To evaluate these terms the most important international rankings were used. The methodology of their construction was introduced and the results of seven years were summarized. The strongest and weakest points of the economy of Lithuania were identified and a comparison with other countries in the region was drawn. The analysis points to the conclusion that Lithuanian entrepreneurs operate in the legal and institutional environment which in some areas is similar to that of most countries of the EU, or even better (for example in the registration of ownership). However, there are some particular regulations that make the conditions of doing business in Lithuania much more difficult than for their European competitors. Among the areas in which Lithuania clearly lags behind the countries considered to be business-friendly in its regulations and procedures are the following issues: tax regulations and tax rates, labor on starting and closing business.

Foreign direct investment is generally perceived as a source of benefits for the countries that receive it. The expected effects of FDI lead countries to compete with each other by creating favourable conditions for long-term investments, i.e., a favourable investment climate. However, the actions undertaken may not only attract foreign capital, but also discourage investment and lead to the withdrawal of invested capital. The primary objective of this study is to identify the factors influencing the investment climate in Lithuania, Latvia, and Estonia. Factors influencing FDI inflows to the Baltic countries were evaluated and divided into what foreign investors perceive as incentives and barriers. Finally, the results allowed to determine the directions of change for the analysed economies.

In the modern world economy business development is influenced by globalization and regional integration. As a result, companies operate in the environment characterized by a tightening competition and rapid technological progress. Several studies conducted at both company and national level reveal a significant impact of innovation activities on the condition of individual enterprises as well as the whole economy. In relation to the above, the purpose of the article is to examine the level of innovation activity undertaken by Lithuanian companies and to show its similarities and differences in relation to EU companies. The first part of the article brings up the theoretical foundations of innovation, while the next parts use secondary data obtained from the Lithuanian Department of Statistics and Eurostat in order to provide the level of innovation activity. The article uses statistical and comparative analysis.

The aim of the paper was to assess the competitiveness of Lithuanian trade with non-EU countries during the years 2005–2016. This assessment was based on three outcome measures determining the position of a country in foreign trade: revealed comparative advantage, import coverage, and the intensity of intra-industry trade. Indicators were estimated for all commodity sections. The analysis used data from the Lithuanian Statistics Department and Eurostat. The study shows that Lithuania has a weak competitive position in trade with third countries only in two groups of commodities: raw materials and mineral fuels.