District Level Regional Economic Growth Preconditions in Vidzeme, Latvia

Gatis Krumins, Ieva Krumina, Sarmite Rozentale

Abstract


Purpose. Vidzeme is a region of Latvia that is characterized as rural region without metropolis (largest city is Valmiera with 24 000 inhabitants), where more than a half inhabitants are living in territories with low population density. Region’s resources in general (people, finance and other) are depleting. Territorially Vidzeme is divided into 25 districts, which are very different in terms of territory and population, as well as economic activity and success. The main purpose of the paper is to investigate factors decisive for the successful growth of districts.

Methodology. Study was performed by analysing statistical data, planning documents of Vidzeme Planning Region, calculation of average and relative values, graphical analysis.

Results. District`s economic activity and viability is highly dependent on the size, population and location. Cities and surrounding districts are closely linked, in particular Valmiera and surrounding rural areas. The largest regions are able to attract more foreign investment. Existence of small districts mostly seems to be economically unfounded. Integration of the cities and the surrounding districts is recommended.

The theoretical contribution. The study is carried out in Latvian state-funded research program. Research methodology and direction is aligned in Institute of Social, Economic and Humanities Research, Vidzeme University of Applied Sciences. The value of the paper lies in covering governmentally important area as Latvian government has initiated discussions about possibility of a new regional reform.

Practical implications (if applicable). The research results will be used in the Latvian State research program ECOSOC, as well as submitted in Ministry of Regional Development, Vidzeme Planning Region, Vidzeme municipalities.

Keywords: Latvia, Vidzeme region, districts, economic growth.

Paper type: Research paper.


Refbacks

  • There are currently no refbacks.




KTU_school_economics and business Riga Technical University
Brno University of Technology Tallinn University of Technology