Smart growth as performance trends in the rural economy of Latvia
2016
Zaluksne, V., Latvia Univ. of Agriculture, Jelgava (Latvia) | Kruzmetra, M., Latvia Univ. of Agriculture, Jelgava (Latvia) | Rivza, B., Latvia Univ. of Agriculture, Jelgava (Latvia)
Any country is interested in economic growth regardless of its development level at some period; yet, the term smart growth takes an increasingly important position in defining growth. The EU Development Strategy until 2020 defines smart growth as an objective to strengthen knowledge and innovation as drivers of our future growth. Given the World Bank’s global competitiveness index for Latvia, such a perspective on national economic growth opportunities is of great importance for Latvia as a country. The authors’ research, based on a framework for rural analysis that is accepted in the European Union and is referred to as “the EDORA cube”, gives insight into socio-economic performance trends towards smart growth regions and particularly municipalities, which are typical local administrative units in Latvia, and economic processes. The research employed LURSOFT, CSB and RAIM databases, performed a horizontal and a vertical analysis and particularly focused on high-tech and medium high-tech industries and the sector of knowledge-intensive services to identify an accumulation of positive/innovative changes. Zemgale statistical region was selected as a territory of medium development level in the country to assess the mentioned phenomena. An analysis of vertical economic growth and horizontal restructuring allows drawing several conclusions on smart growth as performance trends particularly in Zemgale region, while at the same time putting forward hypotheses for assessing the processes being in place in the other regions of the country.
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