European beech (Fagus sylvatica L.) timber value is high in southern Europe due to a great demand from Asia. Since the timber market is global, over a long time we can expect gradual increase in demand also in other countries, including Latvia, where climatic conditions becomes increasingly more suitable for this species due to ongoing climatic changes. In order to develop recommendation for the use of beech in our country, the aim of the study was to assess the potential financial gain from Fagus sylvatica stands in Latvia. Assortment structure, defined by topdiameter and length, as well as their prices was set based on the literature survey. Results showed higher income from older (115 years) than form younger (58 years) stands: 9108 EUR haE-1, and 7939 EUR haE-1, respectively. However, the opposite was true for the net present value (r = 3%): 1423 EUR haE-1 and 304 EUR haE-1, respectively.

Private forestry and forest owners in Estonia have become more profound research subjects in the last decade. One of the most common research topics has been the identification of private forest owners’ (PFO) values and objectives. However, much of the existing studies rely on quantitative data which usually describes more active owners and owners whose forest property is larger than the average. Thus, the aim of the present study is to identify the management objectives and motives of non-industrial private forest owners using a qualitative approach – something that has been rarely used in forest owners’ research in Estonia. Eight forest owner interviews form the dataset, which is analysed in order to identify PFO forestry objectives and forest use. The results of our qualitative content analysis show, in principle, similar generalized forest owner types of motivations. However, the qualitative approach opens up these generalized types even more. Income motive goes beyond just continuous financial returns and means in many cases a sense of security. Forest ownership is closely linked with “home” interpretations. We conclude that qualitative methods in small-scale forestry research provide new insights to forest ownership and its meanings to private forest owners.

It is important for every country that its territory develops evenly and in a balanced way. In the European Union (EU), a special focus is placed on the development of rural territories, as predominantly rural regions in the EU represent 57% of the territory and 24% of the population. In Latvia, the development of rural territories depends on economic growth in the key industries for the rural areas – agriculture and forestry, and logging that contributed to 4.3% of GDP and employed 9.5% of the labour force in 2011. Therefore, the research aim is to perform an assessment of the administrative territories of Latvia. The research analysed the municipalities of Latvia in terms of population and change in the population as well as in terms of revenue and income and change in the revenue and income. The research found that in Latvia the best economic performance was demonstrated by the municipalities with a population in the range of 8-12 thousand. In the period 2004 – 2014, the number of residents decreased by more than 20% in 49 municipalities of Latvia. Such municipalities are located far away from the capital city, and poor economic performance indicators with a prevailing primary sector were typical of the municipalities. The municipalities with higher tax revenue had larger populations, which increased in the period of analysis, and such municipalities are located in the vicinity of Riga and high economic performance indicators were characteristic of them.

Urban-rural income convergence provides an opportunity to reduce the income inequality, ensuring cohesion and increasing economic output. The results show that urban-rural income convergence is a continuous tendency in the EU; the urban-urban income gap declines – rural population received 79% of net income of population living in cities in 2017 (in 2010 it was 69%). The rural population accounts for 27.3% of the EU and any changes have notable impact on the rest of the economy. Nationally the urban-rural income convergence dramatically differs amid the EU countries. In order to model an impact of urban-rural income convergence, a comparative-static approach that involves an input-output model is applied. Two scenarios are estimated for Latvia’s economy: rural net income in Latvia is assumed to be 89% of cities net income (as in the Euro Area average) in both scenarios, in the first one the saving rate is constant; in the second rural households anticipate the additional net income as a gift (saving rate for extra net income is equal to zero). The results of the first scenario argue that households final demand expenditures increase by 4.5%, output by 2.7%. The largest increase of output is modelled in chemical products (8.9%), paper products (8.7%), electrical equipment (6.2%), pharmaceutical products (6.1%), and textile (5.8%) industries. In the second scenario, the output increase: 3%. The results certify that the increase and convergence of income in rural areas are important even in advanced economies, such as the EU countries. The national and EU policies are welcome and can give notable impact on economic growth.

The results of synthesis and analysis regarding the structural diversity of farms, their differences, divergence and development in Jelgava district and Zemgale agricultural region are expanded in the article. Commercial farms and semi-subsistence farms are particularly studied on the basis of farm accountancy data.

The necessity of the research is to determine by the fact in Latvia there is a strong growth in bank credit to the private sector like in several transition countries in Central and Eastern Europe. Its implications for macroeconomic development and financial stability can be ambiguous. The aim of the research is to find possible scenarios for positive credit (to private sector) growth implications for macroeconomic development and financial stability in Latvia. Attainment of the objective comprises analysis of available statistical data about Latvia, identification of factors affecting bank credit growth following up some recent researches and modelling scenarios how the credit growth could facilitate further economic development in Latvia. This paper presents only recent trends in bank credit to the private sector in Latvia and evaluates some of the factors affecting these trends. It does not provide updated practical models and scenarios because the research has been started only recently.

Land reclamation is very important in Lithuania: under the climatic conditions of our country it is necessary to drain land. Today approximately 90% of the whole agricultural production are grown in drained land. In this article financial problems of land reclamation works are analysed. Not taking into account our country's financial abilities, the maintenance of land reclamation systems must be done properly, and in time - only then, we will be able to guarantee the best long-lasting functioning of drainage systems, and in the future there will be no greater and it will be unnecessary to do expensive preliminary reconstructions works. The maintenance works of drainage systems may be full-filled properly and in time when increasing the financing for land reclamation works up to the necessary level (any subsidies resources and payments are possible, as well as different labour variants and other alternatives) or reducing the maintained drained areas, so that we could throughly keep on eye on land reclamation systems.