AGRIS - Search

Recently economic development has been an issue of intense research and discussion in an academic society. Many facets of countries’ economic development were examined, including foreign trade. As a foundation of international cooperation, this indicator is relevant in observing one’s internal development and external ties. In case of Latvia, this topic is heavily influenced by economists, and the geographical perspective is quite underdeveloped. In this research, the economic ties of Latvia were explored through the analysis of its main export groups in sectors of agriculture, forestry and fisheries throughout the first decade of the 21st century. With the aim of establishing clear ties between Latvia and its major export markets, the statistics of foreign trade was analysed using frequency analysis. It can be reported that in general Latvian export markets are closely located and consist of the Baltic Sea Region countries such as Denmark, Germany, Russia and others. Despite the differences in commodity group destinations, it can be clearly stated that a division of trade flow still exists, separating it into two directions - Eastern and Western, where the former allocates the majority of Latvian processed commodities and more sophisticated goods, and the latter consumes raw materials and less transformed materials. This arguably shows a difference in demand in Western and Eastern markets, where the first mostly requires materials for its own industry, while the latter procures them for consumption on the local market, again pointing to a complexity of reforms required for the Latvian economic focus turning towards Western markets.

Show more [+]