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.

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.

Apple trees are the most common fruit tree type in the EU covering 450 000 ha. At the global scale, the largest apple exporters are EU-27, China, Chile and the USA, but the largest importers – the EU-27 and Russia. In the EU and Russia, large volumes of apples are imported during the cold time of the year. The market for fresh fruit has traditionally been driven by price, but today’s market has become even more dynamic and consumers – more fastidious. The aim of the article is to identify the main determinants influencing prices of fresh fruits and indicate a range of differences between winter and summer prices of fruits based on the example of apples. The current research should be regarded as a ‘work in progress’, as it will be a part of more extensive research conducted in several EU countries and different times of the year. In the present research, the authors have used comparative analysis, which was based on theoretical literature studies, publications and statistical data available in EUROSTAT databases as well as statistical data aggregated by Spanish, Polish and Latvian market research institutions.

Europe is the number two producer of beer worldwide. However, the quantity of beer sold in Latvia in the last decade did not increase considerably, and the average quantity of beer consumed per capita rose very slowly. Even though beer consumption was stable in Latvia, the quantity of beer supplied to the market was approximately three times greater than the quantity of the other kinds of alcoholic beverages combined, totalling about 15 million dekalitres. Besides, in recent years in Latvia the segment of craft beers tended to increase, which became increasingly popular in Western Europe and the number of small breweries sharply increased there. In Latvia, the number of small breweries increased at a slower pace, therefore, the research aim was to examine the factors influencing the development of small breweries in Latvia. The research found that most of the breweries in Latvia qualified for the status of small brewery, the output of which did not exceed 50 000 dekalitres per year. Although small breweries produced craft beers, yet their performance and development were considerably influenced by the activity of the large breweries and the purchasing power of consumers. Small breweries positively influence the beer drinking traditions of Latvians, which can contribute to the stable development of the small breweries. Small breweries have their competitive advantages in the market, which is due to the quality and assortment of their products, as well as they perform extra economic activities that contribute to their recognition.

Competitiveness is the key factor in order to reach the economic transformation, smart growth, governance and legal framework for the state and society for sustainable development that are stated as the major goals in the current planning period in Latvia. High-technology industries are the main drivers of economic activity in developed economies. To ensure data comparability, the official definition of the high-technology industries by Eurostat is applied in this research including two industries: manufacture of basic pharmaceutical products and pharmaceutical preparations and manufacture of computer, electronic and optical products. The research aims to analyse high-technology industries in Latvia taking into account the competitiveness and the regional allocation using a set of several indicators. According to NUTS 3, Latvia is subdivided into 6 regions; however, the high-technology industries are regionally allocated mainly in two regions, Riga and Pieriga regions. Manufacture of basic pharmaceutical products etc. employs 99% of employees in these two regions, manufacture of computer etc. products – 81% despite the fact that only 54% of employees reside in these two regions. The research confirms that the high-technology regional allocation depends on available labour resources and also education and professional training facilities in the region. We conclude that the high-technology industries are competitive in the global market as the share of the high-tech products in total exports is several times higher than the share of these industries in the manufacturing sector or in total economy. The global competitiveness of Latvia’s high-tech industries is stable and gradually rising.

Agriculture not only supplies food and fibre to the society, but also provides other services, which are not revealed in the market prices. The role of agricultural activities is essential in forming and improving the landscape, in particular, for Lithuanian case study. Therefore, the paper focuses on development of the framework for estimation of consumers’ willingness to pay for agricultural landscape improvements. The objectives of this paper are to present construction of the estimation framework for eliciting willingness to pay (WTP) for non- market agricultural landscape goods through choice experiments (CE) in Lithuania; then, to show the results of framework pre-test, and identify applicability of the framework designed. CE is a survey-based method implying creation of repetitive choice situations about alternatives of agri-environmental schemes for revealing how inhabitants of Lithuania value public goods from agricultural landscape (scenic views, variety of flora and fauna species, recreational infrastructure and services, the objects of cultural heritage), enabling to estimate Lithuanian residents’ WTP and the demand for improvements of agricultural landscape. The results of the pilot survey have shown that the questionnaire was comprehensible and interesting to the respondents, revealing that the valuation of agricultural landscape is in demand by the society. The results of modelling, applying conditional logit, have shown a good model fit, allowing the usage of the estimation framework for the main survey and an estimation of consumers’ willingness to pay for public goods/improvements from agricultural landscape.

In the regions of Latvia there still exists a large unused resource – social capital (SC). Ineffectively implemented development policies, population’s alienation from the state democratic institutions, a low level of non-governmental engagement and SC, lack of resources in the local government sector, increased emigration, civic cynicism, low conditions of the prestige of the political profession have facilitated the development differences among territories. The research goal: comparison of the social capital of Zemgale region, towns and districts. Monographic analysis and method of synthesis, data statistical research methods – grouping, comparison, the processing and interpretation of statistical data – the method for analysing aggregate indicators, was used in the article. The research discovers the SC at the micro-level – the collaboration and attitudes between citizens and the state as well as in-between the individuals themselves, along with the macro-level – interaction of social groups as a part of a network which helps create trust to local government bodies as well as the state. The study indicates that the development of the Zemgale region is impacted not only by such social capital factors as the population density in the districts (0.37), the number of population until the working age (0.55), but also by the factor education level of the deputies (2009-2013) between the districts (0.12), towns (0.41), and the whole region (0.14). This verified the assumption that higher education level implies higher social potential and more active social inclusion. The authors suggest the local-governments to devote increased funding to the NGOs as it is the most active form of social capital, thus ensuring a long-term development of such initiative groups.

Non-bank crediting has become popular in Latvia as well as in other European countries due to various economic and social factors. Since the banks in recent years have introduced much stricter lending conditions, non-bank crediting sector has experienced a significant increase not only in Latvia but also in other European and world countries. Non-bank crediting market actively began to develop through a wide promotion of consumer credits in the major mass media; thus, creating human interest in the availability of fast and easy processable credits. Non-bank credit companies without customer deposits have transformed the present credit market, since a number of new players entered the market testing new business and crediting models and providing solutions to credit-challenged customers. The research aim is to study the non-bank consumer crediting trends in Latvia and it employs a monographic descriptive method as well as the methods of analysis and synthesis and graphics. The research results demonstrate that the popularity of non-bank credits is still growing among consumers, since the total amounts of non-bank credits disbursed for the first time have increased by EUR 116.61 million or 33.18% for the period 2012-2015 with distance credits being the most demanded credit type accounting for approximately 40% of all non-bank credits. Non-bank credit market is saturated and there is a fierce competition between non-bank crediting companies in terms of interest rates, crediting conditions and other factors.