2011,4 (57) - Klaipėdos universitetas

Vaida Jundzilaitė, Juozas Vijeikis
investigation more evident. Based on this background, the article analyses the topic
relevant to the overall current development of Lithuania’s economics – the specifics of
Lithuania’s foreign trade development – by determining the underlying problems.
The aim of the article is to analyse the trends and problematic areas in Lithuania’s
foreign trade development. Export and import flows have been chosen as objects for
the analysis. The methodology for the investigation comprises statistical data chronological
comparative analysis and the method of the theory of constraints.
The paper discusses European Union’s foreign trade policy and the course of
Lithuania’s integration into its trade system. Lithuania’s foreign trade development
throughout the period of 1995–2008 has been analyzed by using the statistical database
analysis. By using the method of the theory of constraints, a comprehensive foreign
trade investigation has been carried out, in which the underlying problems in this economic
area that hinder the functioning of the foreign trade have been identified. Also,
proposals as to how to improve the effectiveness of the functioning of the foreign trade
have been provided.
During the period of occupation, the independent functioning of Lithuania’s foreign
trade has been restricted. Only after Lithuania regained its independency in
1991, the volumes of international trade have grown. Since the country became a
member of the integral European Union, it expanded its foreign trade markets and
substantially improved the conditions for the international trade.
The statistical database analysis that has been carried out enabled to conclude that
during the periods of 1995–2003 and from the admittance to the European Union until
2009, the export and import increased more than fourfold. The foreign trade balance
deficit has doubled in the periods under the investigation. The following major problems
in Lithuania’s foreign trade have been identified: large trade balance deficit, the
dependence of the dominant share of the export on the imported raw materials, and the
export of goods that have a small value-added.
By using the method of the theory of constraints, the fundamental obstacles that
conditioned the problematic in Lithuania’s foreign trade have been identified: cheap
labour force in the country – insufficient advantage in the long run, typical to the developing
countries export and production structure, lack of data on foreign countries’
trade regulations, and low Lithuania’s image. Apart from these problematic areas, the
recent years’ global economic and financial crisis has contributed, too.
In order to reduce the problematic areas in Lithuania’s foreign trade, the trade balance
deficit ought to be decreased by means of export stimulation. This calls for
changes in trade conditions: the expansion of the export zones, improvement of the
country’s image, reduction of trade risk by fostering cooperation, establishment of an
effective business insurance system, and improvement of the financing conditions. To
improve the branch structure of the export, it is necessary to switch from the energy
and labour intensive sectors to those that create a higher value-added by utilizing the
intellectual potential and investing in scientific research. In order to improve the
export infrastructure, its dependence on the import of raw materials ought to be decreased
by exploiting local renewable energy sources. Stimulating the consumption of
Lithuanian goods and services is of great importance.
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