IDEAS home Printed from https://ideas.repec.org/a/vrs/seejeb/v12y2017i2p47-60n3.html
   My bibliography  Save this article

the impact of national economy structural transformation on regional employment and income: the case of Latvia

Author

Listed:
  • Mihnenoka Aleksandra

    (Riga Technical University, Faculty of Engineering Economics and Management)

  • Senfelde Maija

    (Riga Technical University, Faculty of Engineering Economics and Management)

Abstract

Structural changes taking place in national and regional economy may vary across nations and regions, causing socio-economic differentiation. This research is focused on analysis of the employment structure, its changes and influence on the level of social welfare, and its deepening of economic disparities between Latvian regions. We apply a comparative statistical analysis based on two tools: the Location Quotient and shift-share analysis, using official Latvian statistical data on employment and income with a breakdown by ten groups of economic activities for the period from 2008 to 2016. The obtained results indicate that the changes in the employment structure during the studied period had a noticeable impact on regional differentiation in Latvia. The authors have discovered that although employment concentration varies across Latvian regions, it remains remarkably stable over time, with occasional re-employment shifts occurring not always in the direction of industries providing higher income, which causes further regional socio-economic differentiation in Latvia.

Suggested Citation

  • Mihnenoka Aleksandra & Senfelde Maija, 2017. "the impact of national economy structural transformation on regional employment and income: the case of Latvia," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 47-60, December.
    • Handle: RePEc:vrs:seejeb:v:12:y:2017:i:2:p:47-60:n:3
    DOI: 10.1515/jeb-2017-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jeb-2017-0015
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jeb-2017-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Silva, Ester G. & Teixeira, Aurora A.C., 2008. "Surveying structural change: Seminal contributions and a bibliometric account," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 273-300, December.
    2. Vera Boronenko & Zane Zeibote, 2011. "Potential of Cluster Development and the Role of Cluster Support Policies in Latvia," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 56(191), pages 35-68, October-D.
    3. Philip Du Caju & Gábor Kátay & Ana Lamo & Daphne Nicolitsas & Steven Poelhekke, 2010. "Inter-Industry Wage Differentials In EU Countries: What Do Cross-Country Time Varying Data Add to the Picture?," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 478-486, 04-05.
    4. Thomas Kemeny & Michael Storper, 2015. "Is Specialization Good for Regional Economic Development?," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 1003-1018, June.
    5. Martin Wolfe, 1955. "The Concept of Economic Sectors," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(3), pages 402-420.
    6. Michael Storper & Thomas Kemeny & Taner Osman & Naji, Institutional Research Information Service Makarem, 2015. "The Rise and Fall of Urban Economies," Post-Print hal-01534293, HAL.
    7. Michael Peneder, 2009. "Sectoral Growth Drivers and Competitiveness in the European Union," WIFO Studies, WIFO, number 57710, January.
    8. Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
    9. Joseph E. Stiglitz, 2011. "Rethinking Macroeconomics: What Failed, And How To Repair It," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 591-645, August.
    10. Michael Peneder & Serguei Kaniovski & Bernhard Dachs, 2003. "What follows tertiarisation? structural change and the role of knowledge-based services," The Service Industries Journal, Taylor & Francis Journals, vol. 23(2), pages 47-66, March.
    11. Kuznets, Simon, 1973. "Modern Economic Growth: Findings and Reflections," American Economic Review, American Economic Association, vol. 63(3), pages 247-258, June.
    12. Magda, Iga & Rycx, François & Tojerow, Ilan & Valsamis, Daphné, 2008. "Wage Differentials across Sectors in Europe: An East-West Comparison," IZA Discussion Papers 3830, Institute of Labor Economics (IZA).
    13. Iga Magda & François Rycx & Ilan Tojerow & Daphné Valsamis, 2011. "Wage differentials across sectors in Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(4), pages 749-769, October.
    14. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2018. "Estimating dynamic localization economies: the inadvertent success of the specialization index and the location quotient," Regional Studies, Taylor & Francis Journals, vol. 52(1), pages 119-132, January.
    15. Vanags, Alf & Basarova, Julija & Titova, Nellija, 2002. "Industrial and intellectual capital clusters in the Baltic states," ERSA conference papers ersa02p248, European Regional Science Association.
    16. Eoin O'Leary & Don J. Webber, 2015. "The Role of Structural Change in European Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1548-1560, September.
    17. Jaan Masso & Kerly Krillo, 2011. "Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 79, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    18. Juan Tomas Sayago-Gomez & Caleb Stair, 2015. "Location Quotient,Coefficient of Specialization and Shift-Share," Working Papers Technical Document 2015-0, Regional Research Institute, West Virginia University.
    19. Peter Havlik, 2005. "Structural Change, Productivity and Employment in the New EU Member States," wiiw Research Reports 313, The Vienna Institute for International Economic Studies, wiiw.
    20. Aleksejs Melihovs & Igors Kasjanovs, 2011. "The Convergence Processes in Europe and Latvia," Discussion Papers 2011/01, Latvijas Banka.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smirnykh, Larisa & Woergoetter, Andreas, 2021. "Regional convergence in CEE before and after the Global Financial Crisis," IHS Working Paper Series 33, Institute for Advanced Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philip Du Caju & François Rycx & Ilan Tojerow, 2012. "Wage structure effects of international trade in a small open economy: the case of Belgium," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 297-331, June.
    2. Andriansyah & Asep Nurwanda & Bakhtiar Rifai, 2023. "Structural Change and Regional Economic Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(1), pages 91-117, January.
    3. Valeriy V. Mironov & Liudmila D. Konovalova, 2019. "Structural changes and economic growth in the world economy and Russia," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 1-26, April.
    4. Renat Butabaev, 2015. "There is no growth without change - policy implications for transition economies," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 11(1), pages 69-84.
    5. Evangelia Papapetrou & Pinelopi Tsalaporta, 2016. "Inter-industry wage differentials in Greece: rent-sharing and unobserved heterogeneity hypotheses," Working Papers 213, Bank of Greece.
    6. Oliver Denk, 2015. "Financial sector pay and labour income inequality: Evidence from Europe," OECD Economics Department Working Papers 1225, OECD Publishing.
    7. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Inter-Industry Wage Differentials in Greece: Evidence from Quantile Regression Analysis," International Economic Journal, Taylor & Francis Journals, vol. 31(1), pages 51-67, January.
    8. Oliver Denk & Sebastian Schich & Boris Cournède, 2015. "Why implicit bank debt guarantees matter: Some empirical evidence," OECD Journal: Financial Market Trends, OECD Publishing, vol. 2014(2), pages 63-88.
    9. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(5), pages 1001-1022, September.
    10. Sèna Kimm Gnangnon, 2020. "Comparative Advantage Following (CAF) development strategy, Aid for Trade flows and structural change in production," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-29, December.
    11. Elías Melchor-Ferrer, 2020. "Determinants of labour productivity growth in Spanish and Portuguese regions: a spatial shift-share approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 45-65, August.
    12. S. Stavropoulos & F. G. Oort & M. J. Burger, 2020. "Heterogeneous relatedness and firm productivity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 403-437, October.
    13. Aggarwal, Aradhna, 2019. "How has globalisation affected the economic growth, structural change and poverty reduction linkages? Insights from international comparisons," MERIT Working Papers 2019-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Kemeny, Thomas & Osman, Taner, 2017. "The wider impacts of high-technology employment," LSE Research Online Documents on Economics 101854, London School of Economics and Political Science, LSE Library.
    15. Tung Liu & Kui-Wai Li, 2015. "The Empirics of Economic Growth and Industrialization Using Growth Identity Equation," Working Papers 201501, Ball State University, Department of Economics, revised Jun 2015.
    16. Syrquin, Moshe, 2010. "Kuznets and Pasinetti on the study of structural transformation: Never the Twain shall meet?," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 248-257, November.
    17. Matthias Figo & Peter Mayerhofer, 2015. "Strukturwandel und regionales Wachstum - wissensintensive Unternehmensdienste als Wachstumsmotor?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 145, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    18. Stephan Kampelmann & François Rycx, 2011. "Does institutional diversity account for pay rules in Germany and Belgium?," Working Papers CEB 11-042, ULB -- Universite Libre de Bruxelles.
    19. Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
    20. Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.

    More about this item

    Keywords

    regional economics; employment structure; income; structural changes; comparative analysis; location quotient;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:seejeb:v:12:y:2017:i:2:p:47-60:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.