Competitiveness and economic development scenarios of Latvia
Abstract
The paper deals with the analysis of exports and competitiveness in Latvia in comparison with Estonia and Lithuania. The objective of the study is to elaborate the possible sectoral development scenarios based on the competitiveness analysis results. The main focus is on exports of goods and revealed comparative advantage (RCA) of exported products as compared to the EU exports. Scenarios are elaborated to model economic development by industries using Latvian Model of Development (LMD), which is a macro-econometric model. Results argue that the economic development is higher, if the competitiveness ensures both higher export growth and import substitution. RCA is an appropriate method to apply in competitiveness studies and the research findings can be used in economic policy and analysis.
Keyword : Competitiveness, revealed competitive advantage, economic development, industries, scenario analysis, scenarios of Latvia
How to Cite
Auzina-Emsina, A., Ozolina, V., & Pocs, R. (2018). Competitiveness and economic development scenarios of Latvia. Business, Management and Economics Engineering, 16, 40-53. https://doi.org/10.3846/bme.2018.2399
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Stalidzane, G., & Dislere, V. (2012). Analysis of unemployed structure in Latvia according to their acquired education. Rural Environment. Education. Personality, 173-180. Retrieved from http://llufb.llu.lv/conference/REEP/2016/Latvia-Univ-Agricult-REEP-2016proceed2255-808X-263-274.pdf
Vukšić, G. (2015). Effects of private ownership, trade, and foreign direct investment on labor productivity growth in transition economies: evidence from the Croatian manufacturing industry. Emerging Markets Finance and Trade, 52(2), 322-335. https://doi.org/10.1080/1540496X.2015.1011540
Batey, P. W. J. (2018). What can demographic–economic modeling tell us about the consequences of regional decline?. International Regional Science Review, 41(2), 256-281. https://doi.org/10.1177/0160017616654741
Bianchi, C., & Mathews, S. (2016). Internet marketing and export market growth in Chile. Journal of Business Research, 69(2), 426-434. https://doi.org/10.1016/j.jbusres.2015.06.048
Bierut, B. K., & Kuziemska-Pawlak, K. (2017). Competitiveness and export performance of CEE countries. Eastern European Economics, 55(6), 522-542. https://doi.org/10.1080/00128775.2017.1382378
Blanchard, O. (2018). On the future of macroeconomic models. Oxford Review of Economic Policy, 34(1-2), 43-54. https://doi.org/10.1093/oxrep/grx045
Bojnec, Š., & Fertő, I. (2014). Export competitiveness of dairy products on global markets: the case of the European Union countries. Journal of Dairy Science, 97(10), 6151-6163. https://doi.org/10.3168/jds.2013-7711
Brakman, S., & Van Marrewijk, C. (2017). A closer look at revealed comparative advantage: gross-versus value-added trade flows. Papers in Regional Science, 96(1), 61-92. https://doi.org/10.1111/pirs.12208
Buturac, G., Lovrinčević, Ž., & Mikulić, D. (2017). International competitiveness and restructuring of the Croatian food industry. Acta Oeconomica, 67(3), 435-462. https://doi.org/10.1556/032.2017.67.3.7
CSB. (2018). Statistical database of the Central Statistical Bureau of the Republic of Latvia. Retrieved from: http://www.csb.gov.lv/
Eurostat. (2018a). Comext database. Retrieved from http://ec.europa.eu/eurostat/data/database
Eurostat. (2018b). Statistical database. Retrieved from http://ec.europa.eu/eurostat/data/database
Eurostat. (2015). Eurostat indicators on high-tech industry and knowledge – intensive services. Retrieved from http://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an3.pdf
Fojtíková, L., & Staníčková, M. (2017). Konkurenceschopnost a produktivita vývozu členských zemí Evropské unie. Politická Ekonomie, 65(6), 669-689. https://doi.org/10.18267/j.polek.1169
Freidenfelde, I. (2011). Highly qualified workforce attraction from abroad – issues in the European Union. Economic Science for Rural Development: Sustainability, 54-60. Retrieved from http://www.esaf.llu.lv/sites/esaf/files/files/lapas/26_sustainability_1.pdf
French, S. (2017). Revealed comparative advantage: what is it good for?. Journal of International Economics, 106, 83-103. https://doi.org/10.1016/j.jinteco.2017.02.002
González-Pernía, J. L., & Peña-Legazkue, I. (2015). Export-oriented entrepreneurship and regional economic growth. Small Business Economics, 45(3), 505-522. https://doi.org/10.1007/s11187-015-9657-x
Hendry, D. F. (2018). Deciding between alternative approaches in macroeconomics. International Journal of Forecasting, 34(1), 119-135. https://doi.org/10.1016/j.ijforecast.2017.09.003
Navarro-García, A., Arenas-Gaitán J., Javier Rondán-Cataluña, F., & Rey-Moreno, M. (2016). Global model of export performance: moderator role of export department. Journal of Business Research, 69(5), 1880-1886. https://doi.org/10.1016/j.jbusres.2015.10.073
Nidhiprabha, B. (2017). The rise and fall of Thailand’s export-oriented industries. Asian Economic Papers, 16(3), 128-150. https://doi.org/10.1162/asep_a_00556
Olczyk, M., & Kordalska, A. (2017). International competitiveness of Czech manufacturing – a sectoral approach with error correction model. Prague Economic Papers, 26(2), 213-226. https://doi.org/10.18267/j.pep.605
Ozolina, V. & Pocs, R. (2013). Macroeconomic modelling and elaboration of the macro-econometric model for the Latvian economy: scientific monograph. Riga: RTU Press.
Ozoliņa, V. (2016, May). Value added exports and competitiveness in the Baltic States. 9th International Scientific Conference “Business and Management 2016”. Vilnius, Lithuania. https://doi.org/10.3846/bm.2016.51
Papadopoulos, N. & Martín Martín, O. (2010). Toward a model of the relationship between internationalization and export performance. International Business Review, 19(4), 388-406. https://doi.org/10.1016/j.ibusrev.2010.02.003
Saboniene, A. (2009). Lithuanian export competitiveness: comparison with other Baltic states. Engineering Economics, 2(62), 49-57. Retrieved from http://www.ktu.lt/lt/mokslas/zurnalai/inze-ko/62/1392-2758-2009-2-62-49.pdf
Skribans, V., & Balodis, M. (2016, May). Development of the Latvian energy sector competitiveness system dynamic model. 9th International Scientific Conference “Business and Management 2016”. Vilnius, Lithuania. https://doi.org/10.3846/bm.2016.12
Solovjovs, D., Kotlars, A., Skribans, V., & Liptak, K. (2017). The economic significance of people skills for effective enterprise management. Eastern European Business and Economics Journal, 3(4), 360-375. Retrieved from http://eebej.eu/2017v3n4/360-375.pdf
Stalidzane, G., & Dislere, V. (2012). Analysis of unemployed structure in Latvia according to their acquired education. Rural Environment. Education. Personality, 173-180. Retrieved from http://llufb.llu.lv/conference/REEP/2016/Latvia-Univ-Agricult-REEP-2016proceed2255-808X-263-274.pdf
Vukšić, G. (2015). Effects of private ownership, trade, and foreign direct investment on labor productivity growth in transition economies: evidence from the Croatian manufacturing industry. Emerging Markets Finance and Trade, 52(2), 322-335. https://doi.org/10.1080/1540496X.2015.1011540