Issue №: 3(43)
The magazine deals with the problems of the agricultural sector of the economy in the context of integration and processes of globalization. Attention is paid to the issues of development of digital economy, rural territories, technologies of enterprise management and organization of accounting, problems of legal support of economic processes, market tendencies of development of various branches of economy. Particular attention is paid to green tourism as a promising segment of the national economy.
THE PRODUCTIVITY AND COMPETITIVENESS PROBLEMS OF LATVIA IN THE CONTEXT OF THE GLOBAL ECONOM
JEKABSONE Sandra – Doctor of Economics, Professor of the Department of Economics, Faculty of Business, Management and Economics, University of Latvia (LV1050, Riga, Aspazijas blv.5, room 330, e-mail: sandra.jekabsone@lu.lv).
JEKABSONE Sandra – Doctor of Economics, Professor of the Department of Economics, Faculty of Business, Management and Economics, University of Latvia (LV1050, Riga, Aspazijas blv.5, room 330, e-mail: sandra.jekabsone@lu.lv).In the article the dynamics of labour productivity in Latvia was analyzed and the factors which have influenced the labour productivity in last 5 years were detected, to compare the productivity in Latvia with EU average. Analysing changes in productivity and labour costs in Latvia from 2013 till 2017, we can see that growth of labour costs exceeds the growth of productivity by more than 2 times in both, tradable sector and total economy. Slow growth in productivity compared with the labour and other production expenses lead to an increase in the price of final goods and services, which negatively corresponds with producers’ competitiveness in both internal and external market. Also, the attention is focused on how to increase productivity growth potential and improve the competitiveness of Latvia. One of the main challenges for Latvia is the creation of new competitive advantages that are associated with investments in the latest technologies, innovation, research, human capital, efficient allocation of resources and redistribution that comes with the behavioural changes of economic subjects. The main conclusion of the research shows, that two mutually interconnected processes determine increase of productivity level. First, they are the entrepreneurs’ choices about competitive advantages on which their business strategies are based, which define the business management and technological decisions (to modernize production or to move resources across sectors, to other region or even other country). Second, it is the ability of the country to ensure the reallocation of its resources to the most productive firms and sectors, i.e. to promote structural reforms or “technological upgrading”.
- Brill M., Holman C., Morris C., Raichoudhary R. (2017). Understanding the Labor Productivity and Compensation Gap. Beyond the Numbers: Productivity, U.S. Bureau of Labor Statistics, vol. 6, no. 6, 14 p.
- Economic Development of Latvia 2018, Ministry of Economics Republic of Latvia, Rīga, 2018, 154 p.
- Eurostat, 2019. Statistic Database. [Online] Available at: http://ec.europa.eu/eurostat/data/database.
- Jekabsone S., Skribane I., Priede J., Skapars R. (2017). Productivity and its Impact on the Competitiveness of Latvia. European Research Studies Journal, Vol. 20, No. 3A, p. 920930. DOI: 10.35808/ersj/754
- Jekabsone S., Skribane I. (2018). Productivity Trap in Latvia, European Integration Studies, No.12, p. 92-103. DOI: https://doi.org/10.5755/j01.eis.0.12.21871
- Measuring Productivity – OECD Manual: Measurement of Aggregate and IndustryLevel Productivity Growth, 2001. OECD, Paris, 156 p. https://doi.org/10.1787/9789264194519-en
- Priede, J., & Pereira, E. T. (2015). European Union’s Competitiveness and Export Performance in Context of EU – Russia Political and Economic Sanctions. Procedia - Social and Behavioral Sciences, 207, p. 680-689. https://doi.org/10.1016/j.sbspro.2015.10.138
- Readiness for the Future of Production Report 2018, World Economic Forum, 2018, 266 p.
- Regulation, institutions and productivity. New macroeconomic evidence from OECD countries, 2017. OECD, Paris: Economics department working papers, No. 1393, 28 p. https://doi.org/10.1787/579ceba4-en
- The Global Competitiveness Report 2018, WEF, 2018, 671 p.
About the journal
С1 Economics and International Economic Relations (by specialization)
D1 Accounting and Taxation
D2 Finance, Banking, Insurance and Stock Market
D3 Management
D4 Public Management and Administration
D5 Marketing
D7 Trade
J3 Tourism and Recreation
Founded in 1997 under the name ”Bulletin of Vinnytsia State Agricultural Institute”. In 2010-2014 it was published under the name “Collection of Scientific Papers of Vinnytsia National Agrarian University”. Since 2015 “Economics, finance, management: current issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 PR dated 12/31/2014).
