Encouraging of competitive relations and strengthening of competitive position of domestic producers on both national and EU common market of products and services become one of the main priorities of national economic policy. Latvian national interests are closely related to the maintenance of the competitive environment as an important factor for increase of competitiveness of separate commodity, enterprise or industry, which is able to provide economic growth in the circumstances of declining the business activity and strong competition on internal and external markets. However, fair market competition takes place only on the markets where there are no any essential obstacles and barriers for potential entry of new market actors. That is why the present article is prepared on the basis of case study carried out for Latvian grain processing sector with the purpose to describe and qualitatively assess the effects of various entry barriers, which really exist on the domestic market.

The objectives of this study were to (1) describe the economic agents of the chain and their commercial and legal relationships; (2) identify the articulations between links, technological levels, indicators of efficiency, installed capacity (scale), and degrees of occupation; (3) characterize and estimate the costing and pricing structures, and the generation of value in different links of the chain; (4) identify those critical costs that can be modified through technological interventions, policy, or other activity; (5) determine the biological and economic risk factors throughout the chain; and (6) develop a methodology to identify and estimate the costs and benefits in each segment and evaluate the generation of value throughout the beef chain. Data at the farm level was obtained from a national livestock survey (CORFOGA 2005b), which provided data on production systems, inventories, productivity, culling, and labor. In addition, surveys were carried out in different segments: (1) auction houses, (2) slaughterhouses, (3) butcher shops, and (4) supermarkets. The aim of these surveys was to describe behavior, determine risks and costs, and identify problems. The weak dynamics of livestock production in Costa Rica are reflected in unsatisfactory productivity indicators. The annual gross income was estimated as US$44/ha for cow-calf operations, $126/ha for dual purpose (including income from milk sales), and $135/ha for fattening activities. Such income rates are considered extremely low, if one uses as reference the commercial value of land allocated to livestock production (ranging between $1000 and $2000/ha). The aforementioned biological inefficiencies, combined with high land costs, impede the recovery of opportunity costs for the capital invested in land, thus making beef production uncompetitive. The cow-calf operation, with its low productivity, remunerates family labor with wages below the legal minimum. On the assumption that the only cash cost is that of labor, cow-calf farms pay family workers at a wage that is equivalent to 60% of the legal minimum. Auctions present relatively good profits per event. However, when these profits are analyzed on a calendar-day basis, they are unattractive because of the low use of installed capacity. One strategy that would usefully improve the efficiency of the auction system in Costa Rica is its integration to reduce the number of fixed operational costs or encourage sharing of these houses so that administrative and operational personnel are rotated among the several existing auctions, taking advantage of the fact that they differ in their days of operation. This scheme would help reduce fixed costs and the commission collected without affecting profits, thus improving efficiency in this link of the chain. However, this option is not easy to implement, as auctions are run by private operators, whose various interests do not always coincide. The industrial sector formed by rural and industrial slaughterhouses shows a low occupation of installed capacity, resulting in high operational costs and low labor efficiency. The total operational costs of slaughtering and dressing are estimated as being between US$32 and $66 per animal. If the estimated unit costs are compared with the rates charged per slaughtered animal (between $15 and $23), then we have to conclude that rural slaughterhouses work at a loss and that industrial slaughterhouses cover their operational costs with processing services and the very small profit margins from sales of byproducts. The best performance in terms of efficiency and profitability is found in the retail sector of butchers and supermarkets. The rate of profits, expressed as the fraction of the final price paid by the consumer that remains in the butcher’s hands as remuneration of his work, ranges widely between 3% and 40%, with an average of 32%. If these profit rates are compared with those of other retail businesses, which are about 8%, then this type of activity presents excellent profit margins with relatively low risk. If, in addition, we take into account that this sector also offers the consumer a broad range of meat cuts from other animals such as pork and chicken, and processed meats, then profit margins are still higher. The value generated throughout the chain, as a percentage of the final value of the young steer at retail price according to activity, is distributed as follows: fattener (34%), retailer (33%), breeder (19%), slaughterhouse (7%), transporter (6%), and auction house (1%). As observed, the distribution of value throughout the beef chain is totally inequitable and incongruent with the level of individual risk confronted by the actors who form it. The inequity observed in the distribution of added value reflects a clear dominant position in the market of some actors of the chain, which enables them to capture a very high fraction of the profits. The value generated in the chain, adjusted for operational time in each link, ranges between US$0.28/animal per day for the breeder and $45.85/animal per day for the butcher. Thus, the highest proportion of the total added value concentrates on the final link of the chain. The butcher or supermarket obtains, on the basis of one animal in the same unit of time, 164 times more value that the breeder located in the first link of the chain. The latter has to confront biological and economic risks not covered by insurance policies, whereas retailers may mitigate risks through insurance policies for their raw materials, equipment, and infrastructure. The competitiveness of the beef chain is the aggregate of the efficiency and productivity of all the links that form it. In a situation where, in the final segment, the demand for beef is low and weakly dynamic, then economic signs of modernization and the technological change it promotes, are not being generated in other components of the chain, particularly in the first link of production. This, in turn, results in a vicious cycle, generating low productivity and lack of competitiveness. To promote technological change, efficiency, and competitiveness in the value chain for beef in Costa Rica, we propose the following six recommendations: 1. That successful experiences of other chains such as that of poultry be analyzed and learned from to identify strategies that would increase the efficiency of the beef chain as a whole. 2. That strategies for promoting the milk production of breeding cows be developed to increase family income, as remuneration of labor is currently below the minimum wage. This option would be viable only in localities where a milk market exists. That livestock producer funds [a livestock producer fund consists of granting livestock in company to produce meat, provided that the producer concerned has adequate pastures for this purpose on his farm] be created as mechanisms to develop social capital, reduce transaction costs, and help improve the chain’s productivity and profitability. These organizations would bring together the different classes of the chain and favor synergies in the interaction of public and private actors. 3. That incentives be created to promote the large-scale adoption of already available improved forage species, as most of the problem of low livestock productivity originates in poor and deficient feed. This strategy would emphasize feeding during dry seasons, thereby minimizing seasonal weight losses in the national herd and improving the profitability of farms. 4. That a carcass classification system be established, based on quality and price that would permit differentiating supplies for different segments of the market. 5. That consumer education be promoted on the health benefits of beef, forms of preparation, and differentiating between cuts, uses, and qualities of beef products.

The paper deals with the evaluation of resource price preferences and resource utilization efficiency in Latvian dairy sector that shows Latvian relative competitive position both in terms of producing competitive products for the market, as well as ensuring competitive salaries and a general rise in living standard for the employees. The evaluation is carried out through analyzing price levels of the main production resources and the utilization efficiency of these resources, based on the comparison with other EU countries. The efficiency indicators in Latvian primary milk production sector are considerably lower and despite resource price preferences the cost level per production value in Latvia is higher than in other countries. The analyzed resource utilization efficiency is low in Latvia also at the processing industry level, though the current price level of the main production resources helps to ensure competitive positions of Latvian dairy products. But considering large differences in compensation levels for labour force between Latvia and other EU countries, without increase in productivity, the situation is not sustainable in long-term.

The aim of the research is to elaborate the competitiveness assessment system for fisheries sector cluster, using which it could be possible to assess the competitiveness of fisheries sector cluster in time and space. On the basis of scientific literature study, the authors provide solutions of how to assess the competitiveness of the fisheries sector cluster. As a result of analysis, it was discovered that the best way to assess the competitiveness of the fisheries sector cluster is by using a comprehensive complex indicator – the Index of the Fisheries Sector Cluster Competitiveness. The created Index of the Fisheries Sector Cluster Competitiveness helps the institutions involved in the creation of fisheries policy more successfully elaborate and improve the common policy of fisheries.

The furniture industry is an innovative industry that produces high added value products and its turnover is several billions of Euros in Europe, and there mainly work small and medium-sized enterprises (abbreviation – SMEs). Nowadays competitiveness is an essential factor for both a country and its enterprises in the process of dealing with changing market conditions. The global market is changing and for enterprises it is too hard to position themselves and find the way how to differ from other competitors. From 2006 until 2010 a Latvian furniture market value, numbers of employees and enterprises in the sector and its share in GDP has decreased. As a result, there are the serious challenges to be met and increase their competitiveness in domestic and export markets. The author has made an in-depth research into influencing competitiveness factors of SME micro level in the furniture manufacturing industry. The study objective was to identify the key internal factors which influence the SME of Latvian furniture manufacturers. The aim was to obtain an internal factor of competitiveness assessment of the 30 respondents by random sampling method and expert method of factor assessment. The enterprises need to constantly increase their competitiveness. The internal factors influencing the competitiveness of SMEs are connected with the products, manufacturing of products, financial situation, management and marketing activities. The competitiveness level of Latvia`s SMEs in the furniture manufacturing has been evaluated as average in 70% of cases. Only 27% of the enterprises show a good level of competitiveness.

The processes of globalization in the world economy have a significant impact on different processes and development in all national economy sectors. Innovations and technological development have also increased the competition between economic operators. Faster growth is also observed in service industries. The global economic downturn affected the Baltic States whose development suffered a sharp decline at the end of 2008 and in 2009. A sudden drop in the demand in export markets, as well as the decline in the demand in the domestic markets due to low purchasing power contributed to the deterioration of the economic situation in the Baltic States, particularly in the manufacturing and construction sectors. Starting from 2011, the economic indicators in the Baltic States have been growing and here the export of goods and services can be mentioned as the main contributor to the development of the economy in the Baltic States. Significant changes in the development of economic sectors started in 2013 due to Russia’s economic problems. During the period 2005 – 2015, most of the value added to the overall structure of the national economy in all three Baltic States was brought by trade and manufacturing. The aim of the research is to analyse the national economy sectors in the Baltic States during the period 2005 – 2015 in order to determine processes that affected the development of economy sectors in each of the countries, or the opposite – the recession, thus finding the most competitive sector of the national economy of the Baltic States.

Competitiveness is the key factor in order to reach the economic transformation, smart growth, governance and legal framework for the state and society for sustainable development that are stated as the major goals in the current planning period in Latvia. High-technology industries are the main drivers of economic activity in developed economies. To ensure data comparability, the official definition of the high-technology industries by Eurostat is applied in this research including two industries: manufacture of basic pharmaceutical products and pharmaceutical preparations and manufacture of computer, electronic and optical products. The research aims to analyse high-technology industries in Latvia taking into account the competitiveness and the regional allocation using a set of several indicators. According to NUTS 3, Latvia is subdivided into 6 regions; however, the high-technology industries are regionally allocated mainly in two regions, Riga and Pieriga regions. Manufacture of basic pharmaceutical products etc. employs 99% of employees in these two regions, manufacture of computer etc. products – 81% despite the fact that only 54% of employees reside in these two regions. The research confirms that the high-technology regional allocation depends on available labour resources and also education and professional training facilities in the region. We conclude that the high-technology industries are competitive in the global market as the share of the high-tech products in total exports is several times higher than the share of these industries in the manufacturing sector or in total economy. The global competitiveness of Latvia’s high-tech industries is stable and gradually rising.

Today technological progress is reshaping global economic development and changing the overall welfare of societies. Therefore, it is important to assess challenges and readiness of the European Union to use its capacity to ensure that technologies benefit people and bring them towards more inclusive societies enhancing opportunities to use artificial intellect for making health, education, agriculture, services and manufacturing industries more efficient and user friendly. The Digital Economy and Society Index analyses the digital performance of the EU Member States across five main dimensions: connectivity, human capital, use of internet, integration of digital technology, digital public services. However, despite intention to jointly develop Digital Single Market, the gap between the EU top digital countries and less digitally advanced countries remains large. The aim of this paper was to evaluate the digital performance indicators of the EU countries, in particular focusing to Poland and Latvia to assess their progress and potential of their human capital’s digital skills. The research is based on theoretical literature studies on industrial revolution stages, European Union Commission documents, indexes and publications available in relevant public institutions such as ministries and industry reports. The research employed monographic method, analysis and synthesis methods as well as graphical data analysis. The research results give evidence that currently Poland’s human capital is significantly better prepared for making use of future digital economy challenges than Latvia’s human capital, and there is a close link between countries’ R and D expenditures proportion of GDP and their human capital’s readiness to integrate in digital economy.

The main aim of the paper is to analyse influence of the real exchange rate on competitiveness of Latvia. Using fundamental equilibrium exchange rate methodology the equilibrium real exchange rate for Latvia is estimated. According the model's results the real exchange rate was overvalued almost during all the reporting period and therefore it could be used as one of the factors influencing competitiveness of Latvia.

The paper covers theoretical analysis of the tourism development in rural regions as well as the public administration role in tourism sector management in order to evaluate, plan and maintain tourism resources in the region. In the paper, there is presented a discussion on some proposed methodologies for the tourism structure and resources evaluation, in order to compare attraction potential of territories for the tourism development (competitiveness between regions). The tourism planning and management process should be proceeded at various levels of public administration institutions in order to avoid negative influence from different branches of the economy, preserve nature, historical and cultural heritage, ingeniously and cost-effectively use EU Structural funds and national budget resources for the tourism infrastructure development in order to prevent unwanted competition between local and regional public administrations, stimulating them to act jointly in order to achieve synergy attracting tourists to visit neighbouring regions. How to achieve mentioned goals the questioning of the tourism development experts has been performed, and some results of it are presented in the paper. Conclusions on the performed research and proposed methodologies as well as some suggestions for the better tourism development management at the regional level have been presented.