| Abstract [eng] |
50 pages, 7 charts, 20 pictures. The main purpose of this master thesis is to assess the impact of private equity investment on Central and Eastern European economy. The following objectives are stipulated: 1. To analyze and systematize the most important theoretical aspects of private capital investment presented by Lithuanian and foreign authors. 2. Define the key indicators that are affected by private equity investments 3. To develop a research methodology, which allows to assess the impact of private capital investments on the most important economic indicators. 4. Using developed methodology, carry out an empirical study of the impact of private capital investments on economic indicators. Private equity funds have a positive impact on the economy and improve the diversification of the investment portfolio. The private equity market in Central and Eastern Europe has developed significantly over the last ten years. Investments in CRE private equity funds have been growing, with more and more companies receiving private equity investments. In 2020, not only the number of companies in which private equity funds invested increased, but also the share of private equity investment in the healthcare sector. Many authors have analyzed the impact of private equity investment on economic growth in different ways. Based on the analyzed literature of Lithuanian and foreign authors, five main indicators have been defined and the impact of private capital investments on them has been studied. The following economic indicators were analyzed in the study: inflation, GDP growth, unemployment, changes in net exports and the number of newly registered patents. The master thesis consists of three main parts. The first part examines the concept of private equity, the development of private equity funds, discusses the most important normative acts and laws governing private equity funds and private equity valuation methods. The impact of private equity investment on economic growth is examined. The second part describes the research methodology and consistency. The third part provides an assessment of the impact of private equity investment on economic performance through correlation and regression analysis. An empirical study assessing the impact of private capital on economic performance has shown that private equity investment has no effect on inflation and gross value-added growth. Rising private equity investment has been found to have a positive impact on the decline in unemployment in Bulgaria, the Czech Republic and the CEE region. Private equity investment also explains 67 percent of changes in net exports in the Baltic States and 51 percent – in the Czech Republic. The change in private equity investment explains about 60 percent of rising number of patents registered in Bulgaria. Although the analysis did not identify a significant impact of private equity investment on economic indicators in the countries of the CEE region, it can be assumed that these indicators may also be influenced by other surrounding factors in each country. |
