| Abstract [eng] |
58 pages, 6 tables, 10 figures, 40 references. The main purpose of this Master thesis is to find out whether venture capital impacts economic development, focusing on Lithuania. In addition, the author aimed to identify whether the impact of venture capital on economic development of Lithuania is positive or negative and if it is significant or not. The Master thesis consists of four main parts; the theory of venture capital impact on economy, methodology for analyzing the impact of venture capital on economic development, empirical results of statistical analysis, and conclusions and recommendations. The theory of venture capital impact on economy is split in four sections where the author analyzes the concept of venture capital, its stage of development in EU, Baltics, and Lithuania, the venture capital impact on economy, and the countries’ determinants of venture capital investments. Following the theory analysis, the author looked at the most appropriate methodology to be used for this type of study, decided on the best variables to be used for the statistical analysis, and then performed the empirical analysis to test the stated hypotheses. The author analyzed the impact that different variables, related to venture capital investments, have on GDP of Lithuania. From the empirical results received, the author concluded that VC investments have a positive impact on GDP of Lithuania in the long-term. Additionally, it was concluded that VC investments contribute significantly towards innovation and R&D. Lastly, the conclusions and recommendations’ part summarize the main points of the literature analysis in combination with the empirical results of the statistical analysis. The author claims that the conclusions and recommendations of this Master thesis could be useful for policymakers and other stakeholders in the venture capital and startup ecosystem of Lithuania. Additionally, this study could be of great interest for startup founders to learn more about venture capital and how to attract venture capital investments. |
