The productivity and its performance is one of the core topics of economics studies. The growth of productivity is an indicator of competitiveness, as well as a possible way to achieve economic growth and wellbeing. After joining the EU, the agriculture of the Baltic countries faced increasing competition of the EU Single Market, while having relatively lower productivity indicators. Since 2004, significant structural changes have taken place in the agriculture of the Baltic countries, and it is a topical question whether these changes and overall trends in the agricultural sectors of the Baltic countries have facilitated to increase productivity. Therefore, the objective of the study is to evaluate the productivity growth of the main production factors and the total factor productivity growth in the agriculture of the Baltic countries between 2004 and 2015, in relation to the changes in the use of the production factors. The paper focuses on the value added as output, and land, labour and capital as individual inputs to obtain partial productivity measures. The evaluation of TFP is based on the Index number approach, where TFP growth is a ratio of the Output index to the Input index. The calculations and analyses show that since 2004 both the agricultural output and value added have increased in the agriculture of the Baltic countries, and also productivity performance has improved.

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.

The legal regulation of the public sector auditing among the Supreme Audit Institutions (SAI) of the Northern and Central-European countries holds the potential to offer new perspectives on the functioning and independence of these public audit institutions. This paper aims to examine the external audit practice among the Baltic Sea Region countries as it is defined in the laws and legal acts aimed at the functioning of the particular institution. The task was carried out by conducting an analysis of the legal regulation of the corresponding supreme audit institutions. Overall, SAIs in the Baltic Sea Region closely cooperates with the Parliaments in the reporting phase. Meanwhile, most of them are closely integrated with the legislative power during the phase of the appointment of the head of the audit institution as well as during the budgeting phase and later on during the reporting phase. The research shows that among the Baltic Sea Region countries the Supreme Audit Institutions pursue audits in diverse range of fields as stipulated in the legal regulations. The paper also indicates a space for further research in the field of the SAI legal regulation, audit merit and further interrelation with the executive and legislative powers as well as the impact of such cooperation on the functioning of the accountability system in the particular country.

The European Union (EU) Common Agricultural Policy (CAP) affects the development of the agricultural industry and rural areas in all the Member States. A very important role is played by various support payments as one of the policy instruments. The CAP has been developing and is being reformed; therefore, it is important to assess the effect of various CAP support instruments on the development of the agricultural industry. Therefore, the research aim is to assess the support instruments and kinds of support as well as their effects on selected agricultural indicators. The research study proceeds in three stages or phases: first, the identification of the total amount of support payments paid and the key kinds of support; second, a detailed analysis of the key kinds of support; third, the identification of associations between the amounts of support payments and other agricultural and farm performance indicators. The research found that in the period 2005 – 2014 in Latvia, the total amount of support amounted to EUR 4.3 billion, of which EUR 520 million or 12% were received by approximately 1000 FADN farms. The most significant kinds of financial support in Latvia were direct payments, accounting for 47% of the total amount of support and financial assistance provided for rural development with 39%. The total amount of financial support and the amount of area-based payments affected the key agricultural indicators as well.

Marvejols is a small town located in Lozère (France). Traditionally, the region was poor with an agricultural oriented economy. However, by the 1960s a new type of business was launched: the residential care facilities for disabled people, especially in relation to Jacques Blanc, a key person in the organization and development of this business. This economic activity brought jobs and new attractiveness, counterbalancing decline in traditional sectors. Nevertheless, currently, situation is less favourable, and the local players try to find out a new strategy, particularly in relation to diversification. In this study, our main aim was to understand conditions of starting and growing of this business. Moreover, we would like to understand current fragilities and attempts to adapt the economy of the territory. In this way, our students and we have chosen this area in relation to the economic and historical weight of its activity. The organization of field trips and survey was conducted in a comprehensive approach perspective. Therefore, we took account parameters working in this territory, such as strategies, psychologies (individual and collective), networks and identities. Human dimensions are strong, especially in discourses, and our main result is a better understanding of the local situation, with comparisons to close cases (Corrèze, Creuse). Furthermore, the quality of the geographical analysis provides working relations with the stakeholders.

In today‘s context of social sciences and practical discussions teamwork, synergy and synergy effects are considered to be one of the most important research objects. Creativity leads any organizational structure to successful solution of a problem and promotes the achievement of not individual but synergy goals, which are the result of generated and practically applied social innovations. The potential of teamwork synergy is transmitted through team dynamics, team creative process, as well as team purpose. The aim of this research is to identify the indicators describing the potential of synergy regarding team creative process and to evaluate their importance in the team creative process while developing innovative solutions. A case analysis method is applied: two different teams, which performed creative tasks, were chosen and analysed. In order to estimate the potential of synergy of creativity, a set of quantitative and qualitative indicators was formed. Features describing each indicator were evaluated by using questionnaires filled by the teams participating in the research. In addition, the teams were observed, in order to estimate the team creative process. The results of the research are valuable for authorities of organizations, who aim at greater synergy results and social innovations encouraging the development of public, social and business interests and creating multiplying effects of ideas. The generalized findings of the research are presented in the article, as well as the applied methods of scientific literature analysis and synthesis, abstraction.

The paper provides the study of specific spatial conditions of rural development of Arctic zone regions in Russia during 2000 – 2015. The aim of the paper is to propose the methodology for rural development disparities study in the Russian Arctic. Spatial development of the Arctic is described by a system of indicators, reflecting the system of the resettlement, the level and quality of life: total population size, life expectancy at birth, housing stock etc. The extent and nature of disparities, particularly, social and economic disparities within the rural territories of the Arсtic are explained. The assessment has been based on min-max ratio, coefficient of variation as well as Gini index. Eliminating excessive spatial differences in the social development of urban and rural territories of Arctic regions, improving the demographic situation, raising the level and quality of life of the population should be seen as a priority of the state policy in the Arctic in order to make it attractive for living.

Public food procurement is a complex system with a large number of participants, and it is regulated by a number of laws and regulations on different sectors, and there is involved a number of controlling bodies. The research aim is to explore and analyze the laws and regulations governing public food procurement in Latvia and to identify the main obstacles to food purchases from local producers. By purchasing food, local governments or authorities have to fulfill the European Union (EU) and the Latvian statutory requirements for both the correct procurement procedures, both on food safety and hygiene norms throughout the whole food product life cycle. Purchasing food from local producers is a challenge, because on the one hand, the EC Treaty and a number of other documents request the free movement of goods and equal rights for all market participants, on the other – the local community and local government is interested in providing school students with high-quality, natural food and in promoting small local businesses. The solution is to use green public procurement (GPP) criteria in the public food procurement. However, in the implementation of the GPP there are several disadvantages for both the local government and local food producers. By studying Latvian and other EU countries’ experiences, it can be concluded that barriers to local food producers to participate in local government food procurement are related to both competitiveness and production storage and regular supply assurance.

Given the intensive competition in almost all the business sectors, customer loyalty research is gaining its popularity among marketers as well as among scholars. The aim of this research was to determine the differences in loyalty to grocery retailer between urban and rural consumers. In order to reveal the differences, questionnaire research was provided and differences between Lithuanian urban and rural customer loyalties were determined. The research results indicated the existence of statistically significant differences between the loyalties of Lithuanian urban and rural regarding their mostly visited grocery retailers in terms of their attitudes and repeat patronage behaviour. Moreover, based on the neo-behaviouristic approach, considering attitudinal and behavioural measures, all kinds of loyalties were observed stronger in the urban areas of Lithuania. The assumption was made that there might be an effect of limited-choice condition. Affected by the latter condition, rural citizens tend to seek for variety more than the urban ones. Consequently, considering the rural citizens’ evaluations, it can be stated that their loyalty is undermanaged, resulting in a very low amounts of truly loyal customers. Therefore, for the grocery retailers it was recommended to revise their customer loyalty schemes based on the point of residence of their consumers. In such a way the higher possibility of meeting consumer needs might be achieved.

In foreign studies Latvia is positioned as a ‘depressive’ region in the year 2030, which will have an insufficient population of young people. Thus, Latvia as a country with a business-friendly environment will not be able to be competitive relative to other European countries and the flow of investment will be at risk, as well as passed on other, more competitive and better developed regions in demographic terms (Grinevica et al ., 2016). It is one of the main reasons to deal with the youth unemployment problem and to realize the actuality and consequences. Also, one of the EU’s priorities of development is to reduce youth unemployment. National labour force surveys (Hoffman, 2011) show that since 2008 the youth unemployment rate has risen in all the EU countries (Hjūza & Borbējs-Pece, 2012). The current economic instability in the context of youth’s prospects and opportunities in the labour market is uncertain (Balan, 2014). Youth unemployment has also a negative effect on economic growth and productivity. The aim of the paper is to identify the importance of unemployed youths and draw the society’s attention to the consequences. The paper presents a brief analysis of importance of unemployment costs as well as the calculation of an economic loss from youth unemployment in Latvia. The result was calculated using Okun’s Law concept.