The aim of the paper is the assessment of the changes in productivity expressed as the share of production costs in total output and its breakdown by major cost types of Latvian and Lithuanian farms over the period of the implementation of Rural Development Programme (RDP 2007 – 2013). The country’s agricultural productivity is determined by comparison of the total agricultural output value (in producer prices) and total inputs which include intermediate consumption expenditure, depreciation, labour costs and other external costs. The information for the analysis was sourced from the standardized Farm Accountancy Data Network (FADN) data. The results show that productivity level is higher in Lithuanian farms, although the tendency is that the share of costs in production value is increasing in Lithuania, so the difference between two countries is reducing. The changes of productivity in both countries infer the relative growth in the productivity in crop farming both in Latvia and Lithuania respective to dairy farming, as well as the productivity of large farms respective to small and medium farms. The comparisons of major cost items reveal an especially high level of energy costs in Latvia, as well as a high and soaring level of depreciation in Lithuania, especially in dairy farms. In the future policy making, it is worthwhile to design the measures targeting the confinement of risks and negative trends identified in the study.

Pine, spruce and birch stem’s quality is different in regions of Latvia, but the differences are not included in the tables and models of assortment outcome. Therefore, it is not possible to predict accurately the outcome of round wood assortments. The aim of the research was to evaluate the regional differences of final felling sawlog outcome for Scots pine (Pinus sylvestris L.), Norway spruce (Picea abies (L.) Karst.) and birch (Betula spp.) in Latvia and to set the regions with a different sawlog outcome. Data from 1645 final felling areas was used for pine, 1202 for spruce and 1531 for birch from the years 2010 – 2012. Firstly, the sawlog outcome of 97 territorial units was set by using the data of the final felling areas sawlog outcome of pine, spruce and birch. Secondly, territorial units with a similar sawlog outcome were consolidated in regions. The smallest regional difference of sawlog outcome was found for spruce (9.4%), slightly larger for pine (10.5%) and the largest difference for birch (16.2%). Three regions with the different sawlog outcome were found for Scot pine, six for Norway spruce and seven for birch. Several spruces and birch regions have similar sawlog outcome but those do not have borders. They are between regions with higher or lower sawlog outcome. Sawlog outcome of neighbouring regions differ for at least 4 – 5%.

To forecast how different indices describing Latvian forest industry will develop in the future, the decision support program which is based on the research of supply chains and production processes as well as on systematic analysis of the whole industry should be developed. One of the most common types of analysis is modelling of processes. In this paper processes of forestry and wood processing in Latvia are modelled by using general approach for system modelling, and each process is described as an abstract system where only its input and output values were identified. Correlations of input and output value time series with a simple and multiple regression analysis method were analyzed. Regression analysis was created for 77 pairs of indices which theoretically could have significant correlations. Input and output factor linear regression analysis for set of processes Forestry and Wood processing shows that not always there is significant correlation between time series of chosen model factors. Some of correlations between time series of input and output data in the model of forest sector even showed controversial results. The amount of information about processes and their quantitative indicators in Latvian wood processing industry is not sufficient for development of precise simulation models. There is need to develop a list of criteria for missing information and carry out its collection process.

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.

In the article there are used statistical data about Latvia rural private households of the years 2001 and 2003. The distribution of natural households in Latvia countryside is investigated. The possibilities of the use of input-output models in the research of natural rural household economy are investigated. Making use of private household "Galakrogs" input-output tables for the years 1999, 2000, and 2001 published by A.Eglite, corresponding input-output models are compiled and their informative analysis is performed.

In the EU during the last decade, interest has risen for both consumers and producers in Food Quality Schemes for agricultural products and foodstuffs. For producers, the appeal lies in the benefits associated with the collective reputation of quality that characterizes labels linked to geographical origin. This paper obtained estimates of technical and scale inefficiencies of PGI bean farms in Greece by applying the DEA methodology. The main part of the divergence from the efficient frontier is more due to inadequate use of inputs and less because farms are not operating at the optimal size. The vast majority of the farms in the sample achieved technical efficiency scores in the range of 70–100% and scale efficiency scores in the range of 80–100%. Average technical efficiency is lower than average scale efficiency which means that a larger segment of overall inefficiency is due to producing below the frontier than to operating at an inefficient scale.