VERSLO PLĖTROS PASIENIO REGIONUOSE PATRAUKLUMO VERTINIMAS INFRASTRUKTŪROS ASPEKTU

Abstract

During intensive globalisation processes cross-border regions obtain a new important role in managing political and economic strategy of a country. Specifics of cross-border regions usually cause less investment flow and this process has to be stimulated by the government. Business growth promotion in cross-border regions is one of the main strategic initiatives because only successful economic activity in a region attracts residents and tourists and also assures good living conditions.

This paper analyses how economica and social infrastructure influences the attractiveness of business development in cross-border regions: authors broaden previous studies of infrastructure impact and present more detailed set of infrastructure indicators, which influence business development. Authors also expand analysis of infrastructure impact by analysing not only the direct effect but also modelling indirect impact of infrastructure development on business attractiveness in a region. Authors concluded that economic and social infrastructure determines attractiveness of a cross-border region for business development. It also directly influences behavior of investors, residents and tourists. Indirect effect of infrastructure results in local and external market demand. Analysis of Lithuania–Latvia cross-border region revealed that Klaipeda and Kurzeme border region have a well developed physical infrastructure and this is the main strength for business development. Nevertheless, infrastructure needs continuous investment and this is a threat for future development. This paper is based on the research, performed during the project „Formation of methodological framework of regional business growth promotion (LT-LV)” (LV-LT/1.1/LLIII-152/2010) implementing Lithuania–Latvia cross border cooperation programme 2007-2013.

DOI: http://dx.doi.org/10.5755/j01.em.17.4.3007