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Economic development and its influence on state capital structure

Author

Listed:
  • Agnė Šimelytė

    (Vilnius Gediminas Technical University (VILNIUS TECH), Lithuania)

  • Jūratė Antanavičienė

    (Vilnius Gediminas Technical University (VILNIUS TECH), Lithuania)

Abstract

The article deals with the problem of the formation of the state capital and examines the influence of local or foreign capital on the national economy. The extent to which GDP depends on foreign debt, on foreign direct investments and on financial support was determined. GDP, the export/import ratio, inflation and average wage level are attributed to the key factors defining the growth of economy, i. e. depending on the capital structure. The average wage level is employed as the unit for the calculation of labour costs. It can be observed that the nature, intensity, and impact of the foreign capital vary in different business sectors. The conclusion can be drawn that the impact of the foreign capital and its factors depend only on the country-specific features.

Suggested Citation

  • Agnė Šimelytė & Jūratė Antanavičienė, 2013. "Economic development and its influence on state capital structure," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 1-9, September.
    • Handle: RePEc:ssi:jouesi:v:1:y:2013:i:1:p:1-9
    DOI: 10.9770/jesi.2013.1(1)
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Direct Investment (FDI); capital structure; foreign capital; government debt; Gross Domestic Product (GDP);
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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