COMPETITIVENESS OF LATVIAN AGRI-BUSINESS IN REGIONAL CONTEXT

Abstract

There has been a significant outflow of the inhabitants from Latvia after 2004, especially from rural territory where agri-business is the main employment provider. Therefore, the paper seeks to evaluate the competitiveness of Latvian agri-business in maintaining and attracting labour force in the context of Baltic Sea region, as well as to explore the relation between migration and the competitiveness of the agri-business. The analysis of the value added and wage level shows on low competitiveness of Latvian economy, and even lower competitiveness of Latvian agri-business, which implies on especially low labour attraction level of Latvian agri-business. The available data confirm the link between the income level and the post-2004 migration in Latvia. The possibility to receive considerably higher incomes in other EU countries has contributed to the outflow of the labour force from Latvia. As the income level in agriculture is even lower than the average in the economy, the rural territory has been more affected by the outflow of the labour force.

DOI: http://dx.doi.org/10.5755/j01.em.17.1.2266