Value added created by industry “Education” in Baltic States and Finland
2019
Jaunzems, A., Ventspils Univ. of Applied Sciences (Latvia)
The goal of this paper is to carry out a comparative analysis of value added as part of total output created by the industry P85 (Education) in the Baltic States and Finland in order to find an answer to the following question: “How realistic is a significant value added increase by the industry P85 in Latvia in the nearest years?” The empirical material of the research is the National Input-Output Tables for the Period 2000−2014 available on the World Input-Output Database with its unified structured statistical information in monetary terms. The theoretical background of the current research is the Input-Output analysis, which is further explored, for example, in the book Input-Output Analysis. Foundations and Extensions by Ronald E. Miller and Peter D. Blair and in some other scientific publications as well. The original version of the Input-Output model created by the author allows to calculate and to interpret the interindustry coefficients, Leontief inverse, allocation coefficients and Ghosh inverse. The author conducts a comparative analysis of direct and total linkages, backward and forward linkages of the industry P85 in the Baltic States and Finland in 2014 to estimate the impact of the increasing gross output in P85 on the national economy. The discussion part and conclusions of the paper are devoted to indetifying the most important factors, which cause significant growth of value added of the industry P85 in Latvia. The main conclusion: the most realistic way to attain an increase in value added of the industry P85 in Latvia is to encourage the export component of final demand with the help of well-organized higher education marketing.
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