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The impact of foreign direct investment on employment in the context of digital transformation: a comparative assessment of the Baltic states

 

Project no.: P-SV4-25-78

Project description:

The study analyses the impact of foreign direct investment on employment in the context of digitalisation, with a particular focus on a comparative assessment of the Baltic States. The relevance of the topic stems from the fact that FDI not only promotes the diffusion of capital, technology and knowledge, but also transforms the structure of the labour market by increasing the demand for skilled labour while potentially reducing the demand for routine work. Although the effects of FDI and digitalisation on employment have been widely discussed in the scientific literature, there is still a lack of studies that examine these factors in an integrated way, especially in the context of small open economies. The aim of the study is to assess how the level of digitalisation changes the impact of FDI on employment in the Baltic States and how this impact depends on the economic structure of each country.


Project results:

The study is expected to identify how the interaction between FDI and digitalisation affects employment trends in the Baltic States, including changes in job creation, labour demand structure, required skills and job quality. The results will also provide a basis for formulating recommendations aimed at strengthening labour market adaptation to digital transformation and improving the effectiveness of FDI and digitalisation policies.

Period of project implementation: 2026-07-01 - 2026-08-31

Project coordinator: Kaunas University of Technology

Head:
Vaida Pilinkienė

Duration:
2026 - 2026

Department:
Economic Transformation Research Centre, School of Economics and Business