• Rasa Norvaišienė Kaunas University of Technology
  • Aušrinė Lakštutienė Kaunas University of Technology



border region, regional development, indicators of entrepreneurial activity


Today’s global change and integration processes, which aim to strengthen the economic potential of countries and regions, lead to the separation of smaller geographic areas. This is particularly true in countries' border regions, which are remote not only by distance, but also economically.

The effects of coherent development to the regions’ economic integration are one of the main objects of regional studies, but their importance for regional development policies at a national or EU level is still very relevant. The European Commission takes care of the development of peripheral borders of the EU and cross-border regions, the macro-economic indicators of which are significantly below the EU average. These regions may face the increasing inter-regional competition in the markets of goods and manpower.

It is generally acknowledged that the country's border regions are different from the country's inland regions due to objective circumstances, which are usually unfavorable to the local population. The border zone is usually characterized by certain restrictions of economic activity (construction, road infrastructure development, entrepreneurship, new business development). Any activity in the border region is restricted in certain spatial, social, cultural, political and institutional features. All of this directly affects the relevant area, population and infrastructure. However, despite these problems, border regions have a specific development potential, which can be exploited by using a targeted regional policy.

Many scientists and researchers working in this field agree that the main thing guaranteeing regional competitiveness is business development, which ensures job stability, manufacturing and service sector development, social well-being of the region’s population. In order to develop adequate, region-specific development models, it is necessary to identify the local operating conditions, to assess the regional specificity.

The purpose of this paper is to identify the factors, which affect the characteristics of cross-border development ant to assess their impact on the Lithuanian border regions’ economic and financial indicators.

The paper analyzes the causes and factors that determine the specificity of cross-border regional development and the economic indicator differences when compared with other regions. The level of a region’s economic development is characterized by its investment attractiveness and the activity and performance of companies operating in the region, which are reflected by their financial indicators.

Empirical research was done using statistical data published by the Lithuanian Statistics Department, which helps to reveal the differences of cross-border regional development in comparison with other regions of the country. The research covers the period of 2005 – 2010. Indicators used in this study: gross value added, the number of operating economic entities, turnover of enterprises, investment in tangible fixed assets, foreign direct investment, turnover of enterprises engaging in trade, the average gross monthly earnings. The results showed that the indicators of companies operating in the border regions are significantly different from the ones of companies operating in other regions.

We use common scientific research methods: systematic and logical analysis, statistical and comparative analysis.







Financial Economics