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Latvijas iestāšanās Eiropas Savienībā ekonomiskā efekta novērtēšana
[Estimation of Economic Benefit of the Introduction of Latvia in the European Union]

Author

Listed:
  • Skribans, Valerijs

Abstract

For Latvia with incoming into the European Union big opportunities in the international markets have opened. Paper purpose is to investigate influence of international integration processes on development of economy of Latvia. In paper various indicators of a national economy before and after incoming into EU are compared. In paper it is defined that joining to EU has increased for Latvia net grants from EU budget. But grants still do not promote development of economy of Latvia, but more stimulate development of internal demand. For demand gain satisfaction, in the conditions of poorly developed internal producing, from abroad the various goods are imported into Latvia, negative difference of export and import is increase. Also inflow of the capital to Latvia after incoming into EU is not used for positive changes in internal economy, and directed to the branches related with finance movings. Actually the industries have not felt essential inflow of the capital. After incoming into EU Latvia has started to export labour force. As a result of migration of labour in Latvia the rate of unemployment has decreased, the wages are grown, expenses on a labour that has grown, that reduced an export potential of internal products. EU grants, capital inflow, gain of wages has caused an inflation gain in Latvia. Considering that together with inflation purchasing capacity of inhabitants has grown, it is possible to draw a conclusion that the population well-being has grown. These processes mainly have short-term character. Migration will decrease, considering a gain of wages or because of reduction of labour resources; inflow of the speculative capital will stop because of insufficiency of reliable pledges. It is possible to assert that they will stop, when the standard of living in EU and Latvia will be approximately identical, i.e. in the end of cohesion process in EU. Most stabile is relation of grants and import. Grants are provided to reduce dependence of the state on import but on the contrary, grants increase import volume. Latvia still cannot find the specialisation in EU and in the global markets. Therefore it became dependent on grants of EU and on international help. Definition of specialisation and an effective using of grants could change situation and promote economy development in Latvia.

Suggested Citation

  • Skribans, Valerijs, 2010. "Latvijas iestāšanās Eiropas Savienībā ekonomiskā efekta novērtēšana
    [Estimation of Economic Benefit of the Introduction of Latvia in the European Union]
    ," MPRA Paper 29313, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29313
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    File URL: https://mpra.ub.uni-muenchen.de/29313/1/MPRA_paper_29313.pdf
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    References listed on IDEAS

    as
    1. Skribans, Valerijs, 2009. "Influence Of Labour Migration On Latvia’s Labour Market," MPRA Paper 16596, University Library of Munich, Germany.
    2. Skribans, Valerijs, 2007. "Ekonomisko un vadības profesiju darba apmaksas tirgus konjuktūra Latvijā
      [Salary conjuncture of economic and management professions experts in Latvia]
      ," MPRA Paper 16384, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    ekonomiskā izaugsme; Eiropas Savienība; starptautiskais tirgus; integrācija; globalizācija;

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F15 - International Economics - - Trade - - - Economic Integration
    • F00 - International Economics - - General - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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