Template-Type: ReDIF-Paper 1.0
Author-Name: Gundars Davidsons
Author-X-Name-First: Gundars
Author-X-Name-Last: Davidsons
Author-Workplace-Name: Bank of Latvia
Title: Modelling Long-Term Competitiveness of Latvia
Abstract: The paper aims to measure competitiveness of exports and, hence, also competitiveness of Latvia as a state using foreign trade data. To find out whether Latvia's export capacity and the potential of competitiveness have improved after the country regained independence, a particular focus is on the respective recent dynamics. The theoretical model presented in the paper is a version of the assessment of current export dynamics. The model treats processes of the last decade as a more profound specialisation. Latvia is producing almost the same output as in the early-1990s, without much extra value added embedded in it. The EU accession undeniably boosts the export market share providing competitive advantages vis-a-vis other low-cost economies. Nonetheless, even in the presence of a positive short-term effect, it may adversely affect human capital over longer horizons. This implies that on behalf of the state a more active involvement in the build-up of industrial basis is desirable.
Creation-Date: 2005-11-05
File-URL: https://www.bank.lv/public_files/images/img_lb/izdevumi/english/citas/Modelling_Competitv_Latvia.pdf
File-Format: Application/pdf
File-URL: https://www.macroeconomics.lv/sites/default/files/modelling_competitv_latvia.pdf
File-Format: Application/pdf
Number: 2005/02
Classification-JEL: F14, F19, O33, O47
Keywords: competitiveness, comparative advantage, real convergence
X-File-Ref: https://repec.bank.lv/refs/wpaper200502.txt
Handle: RePEc:ltv:wpaper:200502