ECONOMIC SCIENCE FOR RURAL DEVELOPMENT ... - LLUFB

1

Economic Science for Rural Development Nr. 28., 2012

ISSN 1691-3078

“ECONOMIC SCIENCE FOR RURAL DEVELOPMENT”

Proceedings of the

RURAL BUSINESS AND FINANCE1. Rural Business Economics and Administration

2. Finance And Taxes

Jelgava2012


ISSN 1691-3078

2

1-10

L. Rantamäki-Lahtinen Turning Rural Potential into Success

TIME SCHEDULE OF THE CONFERENCE

Preparation: October 2011 – April 2012Process: 26-27 April 2012

Abstracted / Indexed: ISI Web of Knowledge, AGRIS, EBSCO

3


ISSN 1691-3078

1-10


Professor Baiba Rivza

Latvia

Professor Bartosz Mickiewicz Poland

Professor Vilija AleknevicieneLithuania

Professor Irina Pilvere University of Latvia

Professor Ingrida Jakusonoka

Latvia

Associate professor Gunita Mazure Latvia

ProfessorBarbara Freytag-Leyer Germany

Professor Jacques Viaene Belgium

Professor Bo Öhlmer Sweden

Professor Wim J.M. Heijman the Netherlands

Professor Maria Parlinska Poland

Professor Csaba Forgacs Hungary

Professor Aina Dobele,

Latvia

Professor Liga Mihejeva,

Latvia

Associate professorBruna Maria Zolin Italy

Associate professorJonas Jasaitis

Lithuania

Associate professorAndra Zvirbule-Berzina

Entrepreneurship and

Latvia

Associate professorInguna Leibus Latvia

Associate professorModrite Pelse Latvia

The chief facilitator and project leader – associate professor Andra Zvirbule-Berzina


ISSN 1691-3078

4


1-10

Editorial Board

Professor Baiba Rivza

Professor Irina Pilvere

Professor Bartosz Mickiewicz Poland

Professor Maria Parlinska Poland

Professor Vilija Alekneviciene

Professor Barbara Freytag-Leyer

Professor Jacques Viaene

Professor Bo Öhlmer

Professor Wim J.M. Heijman the Netherlands

Professor Csaba Forgacs

Professor Aina Dobele

Associate professor Bruna Maria Zolin Italy

Associate professor Andra Zvirbule-Berzina

Associate professor Gunita Mazure

Editor – in-chief Associate professor Andra Zvirbule-Berzina

Associate professor Gunita Mazure

Zanete Gruzina

Dzesija Zeiferte

Agnese Radzele-Sulce

Gunita Mazure

Agnese Radzele-Sulce

5


ISSN 1691-3078


1-10

Reviewers

7206

Dzintra Atstaja Dr.oec., assoc. prof. (School of Business and Finance, Latvia)

Anita Auzina Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Stanislaw Bagienski Dr.hab., prof. nadz. (Warsaw University of Life Sciences, Poland)

Dr.oec., lecturer (Stockholm School of Economics in Riga, Latvia)

Dainis Berjoza Dr.ing., assoc. prof. (Latvia University of Agriculture, Latvia)

Veronika Bikse Dr.oec., prof. (University of Latvia, Latvia)

Ligita Bite Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Vera Boronenko Dr.oec. (Daugavpils University, Latvia)

Ieva Brence Dr., assoc. prof. (Latvian Academy of Sciences, Latvia)

Inta Bruna Dr.oec., prof. (University of Latvia, Latvia)

Veronika Bugina Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Andrzej Czyzewski Dr.hab., prof. (Poznan University of Economics, Poland)

Alina Danilowska Dr.hab., prof. (Warsaw University of Agriculture, Poland)

Rimantas Dapkus Dr., assoc. prof.( Kaunas University of Technology, Lithuania)

Vija Dislere Dr.paed., assoc. prof., (Latvia University of Agriculture, Latvia)

Aina Dobele Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Aija Eglite Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Justyna Franc-Dabrowska Dr.hab., adjunct prof. (Warsaw University of Life Sciences, Poland)

Ineta Geipele Dr.oec., prof. (Riga Technical University, Latvia)

Barbara Golebiewska PhD hab. (Warsaw University of Life Sciences, Poland)

Jaroslaw Golebiewski Dr.hab. (Warsaw University of Life Sciences, Poland)

Gunta Grinberga-Zalite Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Inguna Gulbe

Dr.math., assoc. prof. (University of Latvia, Latvia)

Uldis Ivans Mg.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Ingrida Jakusonoka Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Elita Jermolajeva Dr.oec., assoc. prof. (Daugavpils University, Latvia)

Helma Jirgena

Inara Jurgena Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Leif Kalev PhD, assoc. prof. (Tallin University, Estonia)

Dr., PhD (Budapest Business School, Hungary)

Bogdan Klepacki Dr.hab., prof. (Warsaw University of Life Sciences, Poland)

Evija Kopeika Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Vulfs Kozlinskis

Zaiga Krisjane Dr.geogr., prof. (University of Latvia, Latvia)

Gediminas Kuliesis

Marika Laizane-Jurkane Dr.sc.pol. (University of Latvia, Latvia)

Olga Lavrinenko Dr.oec. (Daugavpils University, Latvia)

Inguna Leibus Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Sviesa Leitoniene Dr., assoc. prof.( Aleksandras Stulginskis University, Lithuania)

Linda Leja


ISSN 1691-3078

6

3-13


1-10

Agita Livina Dr.oec., assoc. prof.( Vidzeme University of Applied Sciences, Latvia)

Valdemaras Makutenas Dr., assist. prof.( Aleksandras Stulginskis University, Lithuania)

Gunita Mazure Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Bartosz Mickiewicz PhD., prof. (West Pomeranian University of Technology in Szczecin, Poland)

Liga Mihejeva Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Tatjana Muravska Dr.oec., prof. (University of Latvia, Latvia)

Aina Muska Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Grigorijs Olevskis Dr.hab.oec., prof. (University of Latvia, Latvia)

Liga Paura Dr.sc.agr., assoc. prof. (Latvia University of Agriculture, Latvia)

Modrite Pelse Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

Irina Pilvere Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Dina Popluga Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Arturs Praulins

Agnese Radzele-Sulce Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Viktorija Rankevica Dr.oec., assoc. prof. (School of Business and Finance, Latvia)

Priit Sander PhD (Tartu University)

Linda Silina Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Inga Sina Dr.oec. (University College of Economics and Culture, Latvia)

Timo Sipiläinen PhD, assist. prof. (University of Helsinki, Finland)

Tomasz Siudek Dr., assist. prof. (Warsaw University of Life Sciences, Poland)

Peteris Skinkis Dr.geogr., assoc. prof. (University of Latvia, Latvia)

Teodor Skotarczak Dr.hab., prof. (West Pomeranian University of Technology in Szczecin, Poland)

Ing. Ph.D. (Mendel University in Brno, Czech Republic)

Evelina Spakovica Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Ilze Sproge Dr.sc.administr., assist. prof. (ISMA Graduate School, Latvia)

Neringa Stonciuviene Dr., prof.( Aleksandras Stulginskis University, Lithuania)

Evita Straumite Dr.sc.ing. (Latvia University of Agriculture, Latvia)

Aivars Strautnieks Dr.oec., assoc. prof. (emeritus) (Latvia University of Agriculture, Latvia)

Voldemars Strikis Dr.agr., prof. (Latvia University of Agriculture, Latvia)

Romena Sulca Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Tatjana Tambovceva Dr.oec., assoc. prof. (Riga Technical University, Latvia)

Elga Tilta

Ilze Upite Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Agriculture, Latvia)

Rando Värnik PhD., prof. (Estonian University of Life Sciences. Estonia)

Dainis Viesturs

Agriculture, Latvia)

Dace Viksne Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Anastasija Vilcina Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Raina Vira

Irija Vitola Dr.oec., prof. (Latvia University of Agriculture, Latvia)

Inesa Voroncuka Dr.oec., prof. (University of Latvia, Latvia)

Jekaterina Voznuka

Bogdan Wawrzyniak Dr.hab., prof. (University of Technology and Life Sciences in Bydgoszcz, Poland)

Ludwik Wicki Dr.hab. (Warsaw University of Agriculture, Poland)

Lajos Zoltan Bakucs Dr. (Hungarian Academy of Sciences, Hungary)

Anda Zvaigzne Dr.oec., assist. prof. (Latvia University of Agriculture, Latvia)

Andra Zvirbule-Berzina Dr.oec., assoc. prof. (Latvia University of Agriculture, Latvia)

7


ISSN 1691-3078

3-131-10


Foreword

This year the conference is organised for the 13th year running and all the papers are published in English. ISI Web of Knowledge

various European countries

Aleksandras Stulginskis University

Daugavpils University

Fulda University of Applied Sciences

Kaunas University of Technology

Professional Association of Project Managers

Riga Technical University Rural Support Service

Seinäjoki University of Applied Sciences Tallinn University Institute of Political Science and Governance Tartu University


ISSN 1691-3078

1-10

University of Szczecin Ural State Mining University

Wageningen University

— — — — —

No. 27 Integrated and Sustainable Development

Rural Business Economics and AdministrationFinance and Tax

No. 29 Resources and Cooperation Resources and Sustainable ConsumptionProduction and Cooperation in Primary and Secondary Agriculture

The abstracts of the conference proceedings provided in English are submitted to the international databases:

Web of Knowledge

Web of Knowledge

Web of Science

Web of Science


ISSN 1691-3078

AGRIS

EBSCO

CABI CAB Abstracts gives researchers instant access

CAB Abstracts

On behalf of the conference organisersAndra Zvirbule-Berzina


ISSN 1691-3078

10

3-13

Content

1. Rural Business Economics and Administration

Dzintra Atstaja,Dzineta Dimante,

Agita Livina

Public Activities in Developing Green Economy: Case Studies in Latvia

14

Tomas Balezentis,Irena Krisciukaitiene,

Alvydas BalezentisFarming Types: Frontier Benchmarking

20

Signe Balina,Sarmite Mickevica

Analysis of Competitiveness of Latvia’s ICT Service Sector 25

Zane Bulderberga,Irina Pilvere

31

Mariusz Chadrzynski

Elge Gaule,Jolita Sinkiene

Role of Place Attractiveness for Local Economic Development

44

Andra Zvirbule- Berzina

Enterprises in Zemgale Region

Jitka Kalabova, Preferences of Consumers when Shopping for Regional Products

56

Sanita Klava Development and Structure of Latvian Agricultural Farms 61

Tatjana Kulikovafor Performance Enhancement of Rural Trade Enterprises

67

Arnis Lenerts,Irina Pilvere of Renewable Energy Sources of Agricultural Origin in

Latvia

73

Oliver Lukason Reasons of Firm Failures: Example of Estonian Agriculture,Forestry and Fishing Industries in 2002-2009

Heikki Makinen,Matti Ylatalo,

Matti RyhanenFinancial Performance on Finnish Dairy Farms

Zane Mistre,Anda Zvaigzne

Assessment of Development Scenarios forThe Regional Internal Communication and Information System of The Latvian Blood Donors Service

Liene Muhina

Aina Muska,Ligita Bite

Factors Affecting the Development of Catering Enterprises in Latvia

104

Zinta Zalite,Anita Auzina

Socio-Economic Value of State-Owned Forests and PotentialEconomic Solutions for Increasing it

112

Viktorija Zaluksne, Baiba Rivza

Place’s Image in Latvia and Peculiarities of Its Perception in

Aldona Zawojska Reputation of Public Administration: Agriculture-Related Agencies in Poland Seen Through Farmers’ Eyes

126

11


ISSN 1691-3078

3-13

Rosita Zvirgzdina, Development Possibilities of Farms in Latvia 133

2. Finance and Taxes

Sandris Ancans 140

Vilija Alekneviciene, Lina Martirosianiene Opportunities

145

Vilija Alekneviciene, Neringa Stonciuviene,

Danute ZinkevicieneOrganisation: Cash Flow Discounting Approach

152

Iluta Berzina

National Parks of the Regions of Latvia

Irina Berzkalne,Elvira Zelgalve

Standard vs. Behavioural Finance:The Case of Capital Structure in Latvia

164

Predicting Bankruptcy of Selected Companies from 170

Alina Danilowska Cooperative Banks and a Problem of Adverse Selection 176

Wim Heijman,Johan van Ophem,

Urszula Bronisz

Regional Competitiveness, Social and Intellectual Capital

Inguna LeibusState Aid for Self-Employed Persons in Latvia and Other

Anna Jesemchika Problematic Aspects of Financial Reporting in Latvia

Jelena Lacenko, Improvement of Internal Control System of Agricultural Enterprises

Gunita Mazurethe Context of Global Financial Crisis

205

Baiba Mistre,Aina Dobele,Ilva Rudusa

Elements of the System of Financing Social Transfers andAssessment of Factors Affecting Them in Latvia

211

Anatolijs Prohorovs,Ingrida Jakusonoka

Financing of Innovation System Development andAttraction of Private Capital

Michal SoliwodaDairy Cooperatives in Poland

225

Sandra Stucere, Gunita Mazure

Application of Immovable Property Tax in 231

Irija Vitola,Daiga Joma

Immovable Property Tax in Latvia: Problematic Aspects andPossibilities for Improvement


ISSN 1691-3078

12

13


ISSN 1691-3078


Proceedings of the

RURAL BUSINESS AND FINANCE1. Rural Business Economics and Administration


ISSN 1691-3078

14

Atstaja et al. Public Activities in Developing Green Economy: Case Studies in Latvia

1 E-mail address

Public Activities in Developing Green Economy: Case Studies in Latvia

Dzintra Atstaja1

Dzineta Dimante

Agita Livina

Abstract. The

Key words: JEL code:

Introduction

believe that a lot can be done on the local level to foster

Results and discussion 1. The concept of green economy

one that results

in improved human well-being and social equity, while

scarcities. In its simplest expression, a green economy

15


ISSN 1691-3078

can be thought of as one which is low carbon, resource

2. Spatial planning in the Context of the EU policies

consider that all European spatial and regional planning

sustainability principle is crucial for developing green

3. Statutory commitment of public participation

opinion and organise public participation in the territory



ISSN 1691-3078

16

involve in the spatial planning process not only local

Public participation is essential for every decision

public organisations and private individuals (public

spatial plans

—

—

—

— the plan developed as a result of public discussion is

Table 1

Development Planning Key Principles

Source: Development Planning System Law (2008), Spatial Development Planning Law (2011)


17


ISSN 1691-3078

—

prepared based on the best practices and observations of

Energy audits and Renovation Application Evaluation

observed regarding issues affecting private interests of



ISSN 1691-3078

municipalities

past three years and the birth rate in 2011 had gone up

results based upon the best practice in partnership of

spatial plans and the natural increase indicator per

Conclusions, proposals, recommendations

trend in the entire country) accounting for budget

three types of partnership in practice and to involve

Bibliography

Table 2

Characteristics of sustainability of certain indicators of case study territorial units

Territorial unit

Approved spatial plan

Natural increase per 1000 inhabitants

Market sector economically active statistical units per 1000 inhabitants

2009 2010 2009 2010

44 46

46 50

Sigulda 0 61

61 65

Ikskile

for Tinuzi parish

52 61

- 57 60

Source: MEPRD (2011), the Central Statistical Bureau of Latvia (2011)



ISSN 1691-3078

Retrieved:

Retrieved:

Retrieved:

pasvaldibu partneri attistibas planosana (Non-

pdf

Green Economy Report

Retrieved:



ISSN 1691-3078

20

Farming Types: Frontier Benchmarking

Frontier Benchmarking

Tomas Balezentis1 Irena Krisciukaitiene

Alvydas Balezentis

Abstract.

Key words:JEL code:

Introduction

The aim

object of the research – technical

tasks

R

Benchmarking

Results and discussion1. Preliminaries of DEA

1 E-mail address

21


ISSN 1691-3078

fo

input or output without worsening some other input

or output

economic

and allocative

ing

there are 1,2,..., ,...,j t N1,2,...,r m 1,2,...,i n

t

t

1/t t

t

(1)

j

b

1

1N

j

j

e

(2)

The best achievable input can therefore be calculated

1/t t t is obtained

Lithuania and selected countries



ISSN 1691-3078

22

in agricultural production: utilised agricultural area

The R package Benchmarking

Source: authors’ estimations based on the FADN data (European Commission, 2011)

Source: authors’ estimations based on the FADN data (European Commission, 2011)


23


ISSN 1691-3078

policy in general should be focused on support of the

Conclusions

policy in general should be focused on support of

Bibliography

Agricultural

Economics

Zemes ukio

mokslai

Benchmarking

for Best Practices: Winning through Innovative

Adaptation

Benchmarking with

DEA, SFA, and R

Data Systems

Benchmarking in Food and Farming

and Infrastructure Development

Omega

OECD-FAO Agricultural

Outlook 2011-2020

Vagos:



ISSN 1691-3078

24

Agrarian

Superiority

Vagos:

mokslo darbai


25


ISSN 1691-3078

Analysis of Competitiveness of Latvia’s ICT Service Sector

1 E-mail address:


Signe Balina1 Sarmite Mickevica

Abstract.

Key words:JEL code:

Introduction

strategic resource for the entire society to reach

resources for particular industry support on the

Theoretical foundation of competitiveness analysis

relevant resources they control and strategies they


ISSN 1691-3078

26

that resources isolated by value chain analyses shall be

—

opportunities and/or neutralises threats in a

—

—

—

for this resource that are valuable but neither rare

Position of the ICT industry service sector in the economy of Latvia


27


ISSN 1691-3078


th

rd by the

processing and hosting are dependent on personnel costs

st

the 2nd

Competitive position and strategic resource availability analysis of the ICT service sector

enterprise can be established by one industry specialist

Table 1

Key indicators of the Latvian ICT sector enterprises in 2010

Number of enterprises

Number of persons employed

Turnover

57 61

2 500 621

2 424 14 600 770

34 100 3

413 5 500 522

and related activities

6 400 173

57

214 700 15

ICT industry total 17 900

Source: Central Statistical Bureau of Latvia


ISSN 1691-3078


Internet service that has already been done by all key

specialists in different industries and project scales is

Source: authors’ calculations based on the data of the Central Statistical Bureau of Latvia

Table 2

Top ICT telecommunication sector players in Latvia, 2010

Turnover, 2010 Number of employees

435

134

Total 2230

Source: Diena-Bonier, 2012


ISSN 1691-3078


en

Data processing and hosting activity has considerably

loped Conclusions

strategic resource for the entire society to reach

Table 3

Average return on capital

Median of return on capital

Source: Lursoft, 2012


ISSN 1691-3078

30


Bibliography Development of Science and

Technology in Latvia, 2011

On the

Information Society of Latvia, 2011. Collection of

Statistical Data

The Global Information

Technology Report 2010–2011. Transformations

2.0

Resources, Firms, and Strategies:

A Reader in the Resource-Based Perspective

The Essential Guide to Competition and Strategy

Harvard Business Review

Academy of

Competitive Strategy:

Techniques for Analysing Industries and

Competitors: with a New Introduction

On Competition

31


ISSN 1691-3078

Theoretical and Practical Aspects of Rural - Urban Typology

Zane Bulderberga Irina Pilvere

Abstract.

Key words:JEL code: R00

Introduction

effective analysis of the spatial processes and successful

The rural – urban typology related issues have

are set to achieve the goal:

1) to evaluate the theoretical aspects of the concepts

2)

Results and discussionT

in the division of policies - urban planners usually

concentrating on urban nodes and giving scant attention

demographic,

economic, and people behaviour.

Z. Bulderberga, I. Pilvere


ISSN 1691-3078

32

1. The demographic approach

national differences in the characteristics that distinguish

This approach can be used

have to change their status but it is not done because

share living in urban areas has considerably changed

has been increasing continuously until reaches the top in

clusters depending on the share of regional population

population – result in urban over-concentration causing

Source: authors’ construction based on the Central Statistical Bureau data, 2011

Share of population in rural and urban areas in Latvia, 1935 - 2010


33


ISSN 1691-3078

2

2. Economic approachThis

localities that are still characterised by a truly rural

Source: authors’ construction based on the Eurostat data, 2010

Share of population in the EU-27 and Latvia, 2010

Table 1

Traditional stereotypical differences between urban and rural populations

Urban Dimension Rural

Economy

Employmentindustry occupations

Education

Services accessibility

representedPolitical views

Source: authors’ construction based on Scott, Gilbert, Gelan, 2007



ISSN 1691-3078

34

ensuring that the rural areas parallel production of

to develop both the agriculture and forestry industry as

countries have found a reduction in service availability

and private institutions have to provide basic services in

differentiated depending on their relation to rural

in the United States stress the opportunities for urban

3. Social aspects

scientists had an opinion that rural territories featured

The education level of the population in the area is one

and less people are engaged in the agricultural industry

the rural as territorial residual category – outside of


35


ISSN 1691-3078

in rura

Conclusions, recommendations

characterise urban and rural areas according to

The traditional approach is based on belief that rural

by different institution and for different purpose –

Table 2

Indicator Area 2006 2010

Urban

Rural

Urban

Rural

per capita (EUR)

Urban

Rural

Urban 13

Rural

Source: authors’ construction based on Development of Regions…, 2004, 2006, 2008, 2010



ISSN 1691-3078

36

Bibliography Eurostat

Regional Yearbook 2010

Journal of Rural Studies

The Dictionary of Human Geography

4. Demographic Yearbook

5. Development of Regions in Latvia, 2004




Studies

Europe XXI

12.

gadam (Latvian Sustainable Development Strategy

till the year 2030

13. Law on Administrative Territories and Populated

Areas

Problems And Proposals for a Regulatory Framework

Wayne State

15. OECD Regional Typology

Retrieved:

International Regional Science Review

How to Best

Fourth International

18.

Collection of Papers of

International Conference “Countryside – our world”

20. Regions at the glance

Retrieved:

21. Regionalas politikas pamatnostadnu 2012.-2018.

gadam projekts The project of Regional Policy

Guidelines 2012-2018) Retrieved:

lv

Spatial Development Policies in Europe

glossaries/european-glossary/spatial-structures/

Patterns of European


37


ISSN 1691-3078

25. Statistical Data of Population

(ed) Sustainable Rural Livelihoods, What

World

The 2009 Revision. United

28.

Journal of

Rural Studies,

Latvija. Parskats par

tautas attistibu. 2004/2005: Ricibspeja regionos.

(Latvia. Human Development Report. 2004/2005,

Legal Capacity in Regions


The research has been supported within the ESF project “Support for the Implementation of Doctoral Studies at Latvia


ISSN 1691-3078

Milk Market in Poland - Selected Aspects of Functioning

Mariusz Chadrzynski

Abstract.

Key words:JEL code: D40

Introduction

in Poland is based on individual suppliers producing

selected aspects of functioning of diary sector in Poland

tasks are:

1) presentation of the general situation on the Polish

2)

3)

4)

aspects of functioning of the dairy sector in Poland

Agricultural Market Agency - Agencja Rynku Rolnego

included a critical analysis of the status of research

Domestic milk market


ISSN 1691-3078

Raw material base

Milk processing

restructuring led to a separation of a group of strong

Table 1

No. Items 2005 2009 2010

2770 2702 2551

100

12426 12447 12430

100

4262 4302 4731

100

736 712 551 465

100

222 200

100

Milk supplies to dairy plants (in thousand kg)

100

Source: author’s calculations based on Milk market – Condition and Prospects (various years, IERiGZ - PIB; Central


ISSN 1691-3078

40

increase of the value of sales per dairy plant taken at

Milk balance and prices on the milk market

Table 2

No. Items 2009 2010

265 224 214 214

100

100

156 160 166 166

100

100

100

100

415 671

100

250 257 253

100

Source: author’s calculations based on: Milk Market – Situation and Prospects (various years, IERiGZ - PIB; Central

Table 3

No. Items 2005 2009 2010

Production 12426 12447 12430

350 647 764

12174 12431 13073 13211

1652 2321 2102 2124

Use for feeds 567 573 515 515

Self-supply included: 2215 2060 2111

7636

12174 12431 13073 13211

41


ISSN 1691-3078

production and self-supplies has slightly decreased

The advantage of the Polish dairy producers over

World’s milk market and foreign trade in dairy products

Table 4

Changes of prices of the raw material and dairy products against the background of milk products and

No. Items 2000 - 2003 2007 - 2009

Wholesale prices

Dairy products retail prices 114

Total food

Table 5

in thousand tons

No. Items2009 2010

Import Export Import Export Import Export

27 103

140

2

11 4

Whey


ISSN 1691-3078

42

vis a vis

Conclusions

also enforce specialisation and concentration of

The progress in the specialisation and concentration

Table 6

in EUR million

No. Items2009 2010

Import Export Import Export Import Export

1 10

123

14

Whey 21

43


ISSN 1691-3078

Bibliography


ISSN 1691-3078

44

E. Gaule, J. Sinkiene Role of Place Attractiveness for Local Economic Development

Role of Place Attractiveness for Local Economic Development

Elge Gaule

Jolita Sinkiene

Abstract.

Key words:JEL code: R

Introduction

the attractiveness of a place is regarded as one of the

The tasks of the research are: 1) to disclose the essence

Research results and discussion

responsibilities to local level authorities in order to take

attain a clear objective - to increase the attractiveness

45


ISSN 1691-3078

Essence of local economic development

local opportunities address local needs and contribute


participation of local business enterprises in its local

Local economic development process

—

by place diagnosis and institutional mapping

—

investigation of the local economy

— by designing economic development strategy,


ISSN 1691-3078

46

— strategy implementation

— good monitoring and evaluation

of policies adopted and institutions established in the

Concept of place attractiveness

business and people in the 20th and the 21st centuries

st

Factors of attraction

understand that place attractiveness for different society

— Community’s factors important to business


47


ISSN 1691-3078

— City factors important to residents

— Community factors important to visitors

the spatial behaviour of visitors has changed: people

to the fact that the visitor considers additional factors

that the objectives to enhance the attractiveness of a

Conclusions —

—

attractiveness plays a key role for the success of

—

be understood as a self-supporting process: it helps

current and/or potential resources necessary for the

attraction of resources should be based on detailed



ISSN 1691-3078

Bibliography

Paper Prepared and Presented for Discussion by



ISSN 1691-3078


1 E-mail address


Zanete Gruzina1 Andra Zvirbule-Berzina

Abstract.

Key words:JEL code: E02

Introduction

opinion about the availability of bank loans has decreased

The aim of the research is to analyse possibilities of

research tasks

1)

2) to classify and describe support that is available for

3)

The research methods

suggest different strategy for each group of local

1. Role and importance of micro, small and medium size enterprises


ISSN 1691-3078

50

—

—

—


action and developed the Microenterprise Support

Table 1

Share of micro, small and medium size enterpirses in the number of enterprises, employment and

Enterprises Micro Small Medium MSME Large

1 424 000 226 000 43 000

27 652 000 22 665 000 43 414 000

Source: authors’ calculations based on the European SMEs under..., 2010

Table 2

YearMicro

enterprisesGrowth

Small enterprisesGrowth Medium

enterprisesGrowth

2004 - 10062 - 2006 -

2005 2125

2006 105603 2363

2007 12745 2546

2546

115654 10122 2037

Source: authors’ calculations based on Mikro, mazo un videjo uznemumu..., 2011

51


ISSN 1691-3078


2. Support for the development of MSMEs in Latvia

— Measures for business or self-employed start-ups Agency and offering training and support up to

—

start-ups

— Micro-lending programme

— Business incubators

Source: authors’ construction

Support available for the establishment of micro, small and medium size enterprises


ISSN 1691-3078

52

— Mentoring and Business Angels

— Courses and seminars

several training sessions and courses for business

— Competitiveness Programme grants loans to the

of the credit institutions due to increased risks they

processing businesses and entrepreneurs attracting

— SME Growth Loan Programme

— Investment Loan in SEB and Swedbank in

possible to use help and advice of business angels and

incubators if the business is established not earlier than

development of micro, small and medium size enterprises in Zemgale region

e enterprises


Support available for the growth and development of micro, small and medium size enterprise


53


ISSN 1691-3078

Table 3

Description of clusters according to the cluster analysis

CriteriaClusters

1 2 3

Specially supported territories - -Akniste



Dendogram using average linkage for local municipalities in Zemgale region



ISSN 1691-3078

54


the authors of the article suggest that according to the

available support:

Bibliography LIAA

(2011).

Retrieved:

SEB (2011).

European

Commission (2010).

Retrieved:

of Economics

Centrala statistikas parvalde (2011)

. Access:

. European Commission (2003)

State Employment Agency

(2011).

Report on the Results of the Survey on the Access

European

Central Bank (2011)


55


ISSN 1691-3078


International Finance Cooperation

Retrieved:


ISSN 1691-3078

56

J. Kalabova, J. Turcinkova Preferences of Consumers when Shopping for Regional Products

Preferences of Consumers when Shopping for Regional Products

Jitka Kalabova Jana Turcinkova

Abstract.

The

Key words:JEL code:

Introduction

also refer to the distribution options of food on the

Pratt (2007) also believes that local food production

buying seasonal food is its freshness and high nutritional

57


ISSN 1691-3078

Source: Kotler, Armstrong, Principles of Marketing, 2008

Consumer buying behaviour model


live including the statistical testing of dependencies

—

three categories according to the size of the place

—

Source: questionnaire survey, October 2010 to January 2011, n = 3767

Mean values for factors, which are important when consumers are choosing a particular product in a store



ISSN 1691-3078

—

—

—

th rank out of 13 evaluation

shopping behaviour in relation to the origin of the food

The approach to local origin (a particular region of

Table 1

Results for the Czech Republic

Statement Mean Median Mode

7 5

6 5





ISSN 1691-3078





ISSN 1691-3078

60


in the origins of food and that the origin of food plays an

can see a great potential in focusing on building an

be seen in the case of regional food products as one of

the food product origin is an opportunity for an increase

Bibliography Advertising and

Perspective.

British Food Journal,

Principles of

(

Research in

Economic Anthropology,

Republic).

Consumer Behaviour. Buying,

Having and Being.

American

Journal of Agricultural Economics, Oxford Journals,

Journal of Rural

Studies



61


ISSN 1691-3078

S. Klava

Development and Structure of Latvian Agricultural Farms After Joining The EU

Sanita Klava1

Abstract.

Key words:JEL code:

1 E-mail address

Introduction

Research object

Research hypothesis

research aim

research tasks

1) to research and analyse the proportion of rented


ISSN 1691-3078

62

2)

3)

(FADN) of

Procedure of the Establishment,

Network

The FADN data are grouped using such an indicator

possibilities to create value added that enables the

Research results and discussion 1. Analysis of the area of land used by farms

On the

Republic of Latvia

units:

—

— In contrast to the previously observed region of

—

74

76

50 70 110

Pieriga

Regio

n 2010

2007

2004

Source: author’s calculations based on the FADN data, 2004-2010

S. Klava

63


ISSN 1691-3078

—

—

Table 1 includes a calculation result on the proportion

of rented land in the total land balance over the period

The relatively largest areas of rented land belong to

2. Farm distribution by group of crops

th

S. Klava

Table 1

YearEconomic size of farms, ESU On average

per farm100 -< 250 >= 250

2003

2004

2005

2006

2007

2010


Table 2

Percentage distribution of various crop groups by area compared with the whole area of land belonging

Crop groupAverage in the period per farm

Economic size of farms, ESU

100 -< 250 >= 250

Rape

Other crops

Unused AA



ISSN 1691-3078

64

—

—

—

— The table also includes data on agricultural land not

—

seen - agricultural land is increasingly used in agricultural

3. Effects of single area payments on the

0,5

1,5

2,5

3,5

4,5

5,5

6,5

7,5

8,5

2004 2005 2006 2007 2008 2009 2010

< 4 4 -< 8 8 -< 16 16 -< 40

40 -< 100 100 -< 250 >= 250

Source: author’s construction based on the FADN data, 2004-2010

S. Klava

65


ISSN 1691-3078

Conclusions

Table 3

YearType of support and

indicators

Economic size of farms, ESU

100 -< 250 >= 250

2003476 1400 123220

-2065 -724 1124 143141

2004

1755 7014 16145 117634

266 533 4536

2775 5641 16016 63324

2007

3155 5624 104014

7102 15520 34163

13046

-3227 -1725

2010

3567 10436

2706 11340 27100 61611

1225 7316 16200 52162


S. Klava


ISSN 1691-3078

66

A high proportion of cereals is observed in the area

Bibliography

Production and Rural Population Density in the

S. Klava

67


ISSN 1691-3078

T. Kulikova Performance Enhancement of Rural Trade Enterprises

1 E-mail address:

Category Management as an Important Management Tool for Performance Enhancement of Rural Trade Enterprises

Tatjana Kulikova1

Abstract.

Category

management

Category management

Category man

Key words:JEL code: R11

Introduction

portance of use of Category management approach

enterprises in the process of Category management

Category management is a process that involves

today is called Category management

ations

Category management

Research results and discussion1. Theoretical base of the research

coordination of interaction processes of trade enterprises

process in its turn helps the enterprise enhance the

The content analysis of different theories on classic


ISSN 1691-3078

Category management

The author also pays a special attention to the

2. Industry peculiarities for rural trade enterprises in Latvia

presents the processes of globalisation in retail industry

analysis to Grocery retail in the Eastern Europe and

analysis of retail industry highlights the peculiarities of

2 2

2

2

2 2

2 2 and


Source: author’s construction based on the statistical data analysis

Retail turnover in Latvia, share of grocery versus non-grocery turnover


ISSN 1691-3078

operatives provide several advantages to the partners:

on turnover share of trade cooperatives on retail grocery

segregated and organised an independent co-operative


franchise basis convenience stores under the Elvi brand

Table 1

Share of turnover, grocery retail by brand, centralised chains

Brand Company name 2010 Cum. share 2010

Mego Mego SIA

Sky

Source: author’s calculations based on GMID database, Lursoft

Table 2

Share of turnover, grocery retail by brand, united co-operatives

Brand Company name 2010 Cum. share 2010

Aibe

Elvi Elvi Grupa SIA

Tops!

Source: author’s calculations based on GMID database, Lursoft


ISSN 1691-3078

70


3. Interpretation of the research results

to-day business relations basic concepts of Category

management

Category management

Category

management

The opportunity of trade organisation to strengthen

to the usage of Category management depends on

purchasing conditions for the biggest retail chains and

highlighted that the Category management

Category management

Category

management

Category

management

they use the Category management

Category

management

pay a special attention to Category management process

Category

management tools in organisations is dependent on

Category management

71


ISSN 1691-3078

Category management

It is obvious that coordination of processes in

the Category management

Category management


Category management approach

Category

management

Category management

retail trade enterprises in the process of Category

management

Category management

Category management is

pay a special attention to Category management

Category management principles

Bibliography

. Annals of

Inquiry

Harvard Business Review

Practice: Synergy in Organisations, Proceedings

Organisational Dynamics,

Progressive Grocer

European

Journal of Information Science

Journal of Long Range Planning

Positioning Your Organisation to

Win

Total Quality

Out of the Crisis



ISSN 1691-3078

72

The Evolution, Trends, and Future Directions of

Clusters and Competition:

New Agendas for Companies, Governments and

Institutions

World’s Top Strategic Consulting Firm

Translating Strategy into

Shareholder Value

16 April 2011

10 February 2011


This paper has been supported by the European Social Fund within the project “Support for Doctoral Studies at the

73


ISSN 1691-3078

A. Lenerts, I. Pilvere Renewable Energy Sources of Agricultural Origin in Latvia

1 E-mail address

Role of Land Resources in the Development of the Market of Renewable Energy Sources of Agricultural Origin in Latvia

Arnis Lenerts1 Irina Pilvere

Abstract.


Introduction

it is necessary to analyse the use of agricultural land

industries of agriculture and forestry to provide the

research aim is to analyse agricultural

research object is agricultural

research subject

Research hypothesis: participants of the energy


ISSN 1691-3078

74

A. Lenerts, I. Pilvere

Renewable Energy Sources of Agricultural Origin in Latvia

Research tasks:1) to characterise the agricultural land resources

and their potential availability to produce RES of

2)

produce RES of agricultural origin according to the

3) to analyse the availability of agricultural land in the

4)

Research results and discussion1. Availability of agricultural land to produce renewable energy sources of agricultural origin

factor

of the entire agricultural area indicates on the

An unused agricultural area indicates that traditional

Part of agricultural land is not presently used for

as of

Table 1

Land uses in Latvia in 1935-2010, thou. ha

No. Indicators of land use 1935 1990 2000 20102010

against2010

against

Total area 100

Total agricultural area 2567 2430 66

Forests 1742 104 170

Other land (occupied by

1122 1074

Source: authors’ calculations based on the RSS data, 2011 and SLS, 2011

75


ISSN 1691-3078

one can assure that these resources are not fully and

2. Necessary quantity of biomass of agricultural origin to produce renewable energy sources according to the target set

of agricultural origin that could be used for biogas

on a study Possibilities of Biogas Production from Various

Kinds of Biomass on a Farm

capacity of biogas plant is up to 1 MW and electricity

3

3 3 3

3. Availability of agricultural land in the territory of biogas thermoelectric power plants

is related to:

—

Table 2

Unused agricultural land in Latvia in 2010

No. Land statusArea Cadastral units

ha number

Surveyed land 100

Unused land: 66 613

Uncultivated land 316 341 56 571

742

Source: authors’ calculations based on the RSS data, 2011



ISSN 1691-3078

76

—

contributing to an increase in value added in

—

-1

The purchase obligation at a certain price is based on

production of energy sources of agricultural origin

Source: authors’ calculations based on the RSS data,2011

Sown areas in agricultural territories near biogas TEPPs in 2011


77


ISSN 1691-3078

of a strategy ensure RES of agricultural origin are

produced according to the territorial location of energy

an opportunity to design a regional energy supply

resources produced based on the available resources

authors point to a need to establish a regional energy

Table 3

Low quality use of agricultural land in the municipalities of biogas development centres in Latvia in 2010

No. MunicipalityAgricultural

area, ha

Farmed agricultural land

Unutilised agricultural area

ha hauncultivated

haovergrown

habuildings

ha

3100 4 254 10

627 4 527 5

Dobele 6 370 3

Ilukste 27443 2134 7 21 14

25307 3101 11 561 21

Madona 71755 12 47

Auce 26221 23042 12 443 56

Nica 11316 1707 15 115 3

31355 21 22

22 1603

Iecava 32 15

Total 14 211

Source: authors’ calculations based on the RSS data, 2011


Development stages of RES market of agricultural origin



ISSN 1691-3078


Bibliography

of Renewable Energy Sources in Latvian Regions

and the Evaluation of Environmental, Economic and

Social Gains on the National and Regional Level)

biogazes ieguvi no svaigas un skabetas kukuruzas

(First Results of Producing Biogas from Fresh and

Retrieved:

and Rural Development Policies: a Prospective

Assessment for Latvia and the Baltic States).

(Economic and Environmental

Gains from Biogas Production)

pieredze (Historical Experience of the Economy of

Latvia)

(The Common Agricultural

Resource and Territorial Challenges of the Future)

(Forecast

Paper of the Republic of Latvia on Reaching the Share

of Renewable Energy Sources in Gross Energy Final

Production until 2020 in Accordance with Paragraph

3 of Article 4 of Directive 2009/28/EC)

Retrieved:

groza un sekojosi atcel Direktivas 2001/77/EK un

(Activity of

the Republic of Latvia regarding Renewable Energy

Directive 2009/28/EC of 23 April 2009 on Promoting

Renewable Energy Sources until 2020, which Amends

and Subsequently Cancels the Implementation of

Directives 2001/77/EC and 2003/30/EC)



ISSN 1691-3078

(Regular Report of the Republic

of Latvia on Achieving the Indicative Target in

Accordance with Paragraph 3 of Article 3 of Directive

2001/77/EC of the European Parliament and of the

Council of 27 September 2001 on the promotion of

electricity from renewable energy sources in the

internal electricity market)

(Possibilities for Biogas

Production from Various Kinds of Biomass on a Farm)

Retrieved:

(Basic Guidelines for Land

Policy for 2008-2014) http://

Retrieved:



ISSN 1691-3078

O. Lukason Reasons of Firm Failures: Example of Estonian Agriculture,

Forestry and Fishing Industries in 2002-2009

Reasons of Firm Failures: Example of Estonian Agriculture, Forestry and Fishing Industries in 2002-2009

Oliver Lukason1

Abstract.

Key words:JEL code:

1 E-mail address

Introduction

reason for such tendency could be the fact that relevant

The research object of current paper is Estonian

it is necessary to collect data on the failure reasons of


reasons


ISSN 1691-3078

of such research has been conducted based on the

et al.

et al.

et al.2. Data and methodology of study

The sources of failure reasons in the current study

Table 1

Bankruptcy declaration years of cases in the current study

Bankruptcy declaration year Number of cases

2002 7

2003 10

2004 7

2005 4

2006 6

2007 5

4

7

Source: author’s calculations based on the KIS and KOLA data

O. Lukason Reasons of Firm Failures: Example of Estonian Agriculture, Forestry and Fishing Industries in 2002-2009


ISSN 1691-3078

Database of court statistics

and decisions

and the second database KIS (Data system of courts)

aggregation to 17 different groups of perceived causes

often the given reason is represented through the

Table 2

Firm sizes of cases in the current study

Number of workers Number of cases

26

3

Not disclosed 12

Source: author’s calculations based on the KIS, KOLA and ECR data

Table 3

Frequencies of bankruptcy reasons for studied 50 cases

Category of reason Frequency

Internal

1

6

11

3

6

failed business plan 5

2

7

17

increase in input prices

action of cooperation partners

4

12

2

Source: author’s calculations based on the KIS and KOLA data



ISSN 1691-3078

3. Empirical analysis and discussion of results

the hypothesis that the source of bankruptcy reason

and bankruptcy year are associated shall currently

variables could be introduced and the typology of reasons


Most of the research has been directed to forecasting

Bibliography

Engineering,

Strategic Change

Journal of Small Business

Journal of



ISSN 1691-3078

https://


Journal of

International Journal of

Acknowledgment

SF0180037s08.


ISSN 1691-3078

H. Financial Performance on Finnish Dairy Farms

Farmer Characteristics, Farm Management and Financial Performance on Finnish Dairy Farms

Heikki Mäkinen Matti Ylätalo

Matti Ryhänen

Abstract.

Key words:JEL code:

Introduction


ISSN 1691-3078

Kay

et al., 2008

The aim of this study was to measure the management

capacity of Finnish dairy farmers by using variables that

describe their personal characteristics and managerial

behaviour and to see how the management capacity

Data and methods

—

—

—

—

Source: Rougoor et al., 1998

Management capacities in relation to environment, biological processes and farm results



ISSN 1691-3078


Factors and summated scales describing the farmer

social values, instrumental values,

intrinsic values, and expressive values.

trust on own success and general trust on farming in the

future.

risk

aversion, appreciation of profession, critical attitude

towards bureaucracy, pro-environmental thinking, and

attitude towards the following political environment. The

interest in

management and entrepreneurial management.

external locus of control

satisfaction

and

satisfaction on agrarian way of living.

The decision making process

use of

analysis tools.

information activity.



ISSN 1691-3078

planning, and controlling. The variables relating to

Connections between farmer characteristics, management process and success indicators


Table 1

Gross margin Turnover Farm net incomeSatisfaction in

**

values ** * *

Intrinsic values

Social values

* *

bureaucracy

**

Appreciation of

profession ** ** ***

thinking * *

Risk aversion

***

control *

success *** *** ***

in future * * **

Entrepreneurial

*** *** * *

Interest in

activity

Use of analysis

tools *** ***

* * *

Financial planning

* * *

Source: authors’ calculations based on the research data


ISSN 1691-3078

Conclusions

interpretation: it is possible that relatively young

are also provided by the relatively high correlations

active touch is characterised by high appreciation of

analysis tools can also be seen as parts of this active

cross-sectional nature of the study is a possible

should be taken into account in order to get a reliable

it is possible to get to a positive track in the long

Bibliography

3:

Agricultural Systems

Agricultural and Resource Economics Review 23 (2):

Managerial and Production Practices on the



ISSN 1691-3078

Agricultural

Systems

Journal of Agricultural Economics

Food

Economics - Acta Agriculturae Scandinavica

Journal of Agricultural and Applied

Economics

World

agriculture and rural Sociology Abstracts. 11(2):

Food Economics -

Acta Agriculturae Scandinavica,

Agricultural Economics 24:

Australian Journal of Agricultural and Resource

Economics

Agricultural

and Food Science

Agricultural Economics


Helsingin

yliopisto, Taloustieteen laitos. Julkaisuja 21:

The

Journal of Agricultural Education and Extension 12:


Psychological Bulletin

British Veterinary

Journal


Paper presented at the

Helsingin yliopiston

Julkaisuja

Acta Agriculturae

Scandinavica,

and Personality Traits: The Edinburgh Study of

Journal of Vocational

Behaviour


Agricultural

Economics


ISSN 1691-3078

Assessment of Development Scenarios for The Regional Internal Communication and Information System of The Latvian Blood Donors Service

Assessment of Development Scenarios for The Regional Internal Communication and Information System of

The Latvian Blood Donors Service

Zane Mistre1 Anda Zvaigzne2

Abstract.

Key words:

JEL code:

1 E-mail address:

2 E-mail address:

Introduction

The research object research subject is internal

hypothesis

The research aim

research tasks

1)

2)

Materials and methodsThe present research is based on theoretical studies of


ISSN 1691-3078

Assessment of Development Scenarios for The Regional Internal Communication and

Information System of The Latvian Blood Donors Service

analysis:

—

—

Transfusiologists; —

—

—

Source: Saaty, 1980

Algorithm for a 3x3 matrix


ISSN 1691-3078


blood service institutions is carried out on the phone that

blood donors in the country per all residents is stable and

circulation into 5 large groups:

1)

2)

3)

4)

5)

by various legal statuses of the institutions engaged

is an institution directly subordinate to the Ministry of



ISSN 1691-3078

1)

2)

3)

4)

Source: authors’ construction based on the research results

Hierarchy of criteria for assessing the scenarios for internal communication and information circulation in the LBDS’s regional system



ISSN 1691-3078

Table 1

Final matrix for the priority vectors of criteria groups

Groups of criteria Experts Average

priority vectorA B C D E

Effective and rational use of

funding

indicators

Source: authors’ calculations based on the research results

Table 2

Calculation of the vector of global priorities

Scen

ari

os f

or

imp

rovin

g

the in

tern

al

co

mm

un

icati

on

an

d in

form

ati

on

cir

cu

lati

on

Eff

ecti

ve a

nd

ra

tio

nal u

se o

f fu

nd

ing

Incre

ase o

f th

e

reg

ion

al syste

m

co

mp

eti

tiven

ess

Incre

ase o

f q

uan

tita

tive

ind

icato

rs

Incre

ase o

f q

ualita

tive

ind

icato

rs

Man

ag

em

en

t o

f sto

cks o

f b

loo

d a

nd

its

co

mp

on

en

ts

Glo

bal p

rio

riti

es

blood service

Operation of independent

institutions producing

Present situation

Source: authors’ calculations based on the research results



ISSN 1691-3078

the calculation of priority vectors for individual criteria

independent institutions producing blood and its


A single scenario of developing the internal

Source: authors’ construction based on the research results

Choices of the most appropriate scenario for internal communication and information circulation in the LBDS’s regional system



ISSN 1691-3078

Bibliography

University of Agriculture

Procedure of Financing the National Blood Service of

Latvia. In: European Integration studies: Research

and Topicalities: Proceedings of the International

In: Economic Science for Rural Development:

Service. In: Issues and Perspectives

The Analytic Hierarchy

Process

Structure and Operational Principles of the National



ISSN 1691-3078

1 E-mail address:

EU Structural Funds for Tourism Development in Latvia

Liene Muhina1

Abstract.

Key Words: JEL code: R10

Introduction

Agriculture Guidance and Guarantee Fund (hereinafter –

taken into account in the planning period for 2007 – 2013

The Rural Support Service (hereinafter – the RSS) is

l

Research results

and priorities of the service industry because it is an

1. Tourism in Latvia


ISSN 1691-3078

2. Tourism project support receivers The research included support receiver projects for

but one support receiver had returned the received

Structural Funds has returned the received support

Table 1

Indicators of rural tourism accommodation sites

Year Number of sites Number of visitors

2007 312

376 131327 11245

2010 276

Source: Central Statistical Bureau of Latvia, 2011

Source: Central Statistical Bureau of Latvia, 2011

Number of rural tourism accommodation sites by regions


ISSN 1691-3078

100

organised and non-organised sport and recreation tourist

Table 2

Support receivers whose projects are not available in the Internet resources

No Support receiver Name of the project

Source: Lauku atbalsta dienests, 2008

Table 3

Support receivers whose e-mails do not work



Table 4

Project receivers who replied within one hour



101


ISSN 1691-3078

celebration on the indicated dates and it could not offer

Table 5

Project receivers who replied within one day



Table 6

Project receivers who replied within two days



Table 7

Project receivers who replied within three days


district



ISSN 1691-3078

102

Conclusions

that is 1/5 of the support receivers included in the

The study presents that 1/5 of the support receivers

the granting and utilisation of the funds of the

Bibliography

on Statistical Data: Tourism in Latvia 2011).

Turisma

un viesmilibas terminu skaidrojosa vardnica

(Explanatory Dictionary on Tourism and Hospitality

Terms).

Project receivers who replied after three days

Nr. Support receiver Name of the project


Support receivers who did not reply to e-mails but were contacted by phone



Table 10

Support receivers out of contact

Nr. Support receiver Name of the project


103


ISSN 1691-3078


ISSN 1691-3078

104


1 E-mail address


Aina Muska1 Ligita Bite

Abstract.

Key words:JEL code: M21

Introduction

of catering services is the largest industry in the

of catering services created 2/3 of the hospitality

Research hypothesis

various factors having different correlative interrelations

The research aim is to investigate the factors affecting

tasks are set to achieve the research

1) to investigate the changes in indicators of catering

2)

3) to analyse the changes in the factors affecting the

The research object is enterprises engaged in the

subject is

105


ISSN 1691-3078

methods

Research novelty – the factors affecting the

Research results and discussion1. Characteristics of catering enterprises in Latvia

supply services by offering food and beverages both for

The geographic distribution of catering enterprises is

of enterprises engaged in the industry of catering services

2100

2200

2300

2400

N

u

b

e

r

2005 2006 2007 2010

Source: authors’ construction based on the Central Statistical Bureau of Latvia, 2012a

Changes in the number of catering enterprises in Latvia in 2005 - 2010



ISSN 1691-3078

106

Irrespective of the fact that the turnover of catering

the average labour productivity also rose in the period of

73 71 70 73

25 26 27 24

2005 2006 2007

Micro (0- - -

Source: authors’ calculations based on the Central Statistical Bureau of Latvia, 2012c

Percentage distribution of the number of catering enterprises by

Table 1

Region 2005 2006 2007 2009 2010

Riga 56 55 54 54 54 54

Pieriga 14 14 14 14 15 15

6 7 7 7 7 7

10 10 10 10

7

7 7 7 7 7 7

Source: authors’ calculations based on the Central Statistical Bureau of Latvia, 2012a

Table 2

Total turnover, average turnover, and average labour productivity of

Indicators 2005 2006 2007 2009 2010

301 735 311 432 216 547 217 630

- 3 -30 1

Average turnover 102 222

- 23 -3 -33 11

Average labour productivity 10 067 10 560

- 23 17 3 -13 6

Source: Central Statistical Bureau of Latvia, 2012 c and authors’ calculations


107


ISSN 1691-3078

The high capacity utilisation rate of catering enterprises in

development of catering enterprises

authors found out (Table 4) that a strong negative linear

Table 3

Number of catering enterprises per 1000 inhabitants in Latvia and its regions in 2005 - 2010

Region 2005 2006 2007 2009 2010

Riga

Pieriga

Source: authors’ calculations based on the Central Statistical Bureau of Latvia, 2012; 2012a



ISSN 1691-3078

3. Analysis of the factors affecting the performance of catering enterprises

Table 4

Region

Factors

Number of residents

Average monthly

net wage of employees

Number of visitors in tourist accommodations

Household expense on food

and non-alcoholic beverages

Household expense on

restaurants, cafes, and hotels

Riga

Pieriga

Source: authors’ calculations

Table 5

Household expenses on food and non-alcoholic beverages as well as restaurants, cafes, and hotels and

Year

Expense on food and non-alcoholic beverages Expense on restaurants, cafes and hotels

on average per household member a month, LVL

on average per household member a month, LVL

2005

2006

2007

2010

Source: Household Budget in…, 2006; Household Budget Survey…, 2007; 2008; 2009; 2010; 2011 and

authors’ calculations



ISSN 1691-3078

of pensioners registered at social security institutions

After analysing the percentage distribution of

Table 6

Number of visitors in tourist accommodations in Latvia in 2005- 2010

Indicator 2005 2006 2007 2009 2010

1155 1330 1556 1114 1312

730 754

63 61 57 61 70

Source: Central Statistical Bureau of Latvia, 2012b and authors’ calculations



ISSN 1691-3078

110

An analysis of the percentage distribution of tourists

not only by region but also by republican city and

the

Conclusions

The geographic distribution of catering enterprises

has increased in the regions but these changes

Table 7

Proportion of visitors in tourist accommodations in the regions of Latvia in 2005 - 2010

Regions 2005 2006 2007 2009 2010

Riga 57 55 55 56 62

Pieriga 17 17 16 15 15

6 6 6 5 4 5

11 12 13 15 12 13

3 4 3 2 2 3

4 5 5 5 5 4

Source: Muska, Bite, 2012

Expenses of foreign tourists in Latvia in 2005 - 2010

Indicator 2005 2006 2007 2009 2010

- 27 11 -17 -2

- 44 23 -2 -16 -7

30 32 31 27 27 26

Source: Tourism in Latvia…, 2006; 2007; 2008; 2009; 2010; 2011


111


ISSN 1691-3078

Bibliography

Retrieved: http://

asp

Retrieved:

services

Household Budget in 2005.

The

In: Rural Development

2011: Proceedings of the 5th

European Integration

Studies

Economics and Rural Development:

for February 2010

about/press-centre/biznesa-vides-apskati/

Statistical Yearbook of Latvia 2008

Tourism in Latvia in 2005.








ISSN 1691-3078

112

Socio-Economic Value of State-Owned Forests and

Potential Economic Solutions for Increasing it

1 E-mail address:

2 E-mail address:

Socio-Economic Value of State-Owned Forests and Potential Economic Solutions for Increasing it

Zinta Zalite1 Anita Auzina2

Abstract.

Key words:JEL code:

Introduction Forest is a priceless natural treasure that provides

present and future living conditions depend on the socio-

The hypothesis

The aim of this study is to investigate the socio-

Enabling objectives 1)

2) to develop solutions for increasing the socio-

Materials and methods

2

113


ISSN 1691-3078

–

Kekol

–

Ksoc

–

fakt–

–

R –

iv

–

–

S –

T – felling age

W –

r – discount rate ( ).

Source: authors’ calculations and construction



ISSN 1691-3078

114


tha





115


ISSN 1691-3078

affected not only by the age of the forest stand but also

and tree species that constitute the highest percentage


Districts in Latvia where soil expectation value is higher than socio-economic


Districts where socio-economic value is higher than the expected



ISSN 1691-3078

116

3h-1

The popular belief that forests shall not be felled is

understand that forest felling is natural process if the

The authors carried out statistical analysis using SPSS

be unhindered because there are no restrictions on




117


ISSN 1691-3078

(the youngest age being 20 years and the oldest being

conclusion that the average rotation period for a forest

Provisions on rotation periods stipulated in the Forest

Forest stand value and forestland value are

one of the highest forestland values but not the highest

value of forestland: it is the ecological value that affects

Conclusions

objectives stipulate that sustainable forest

forestland and the ecological value of a stretch of

felling age and the value of the felling area at the

The average forest stand rotation period should

Recommendations

aspen stands to be used as fuel or high-energy



ISSN 1691-3078

Socio-Economic Value of State-Owned Forests and

Potential Economic Solutions for Increasing it

stand rotation periods provided for in the Forest

Bibliography

Forest Ecology. A Foundation

Printed in the United

Retrieved:


ISSN 1691-3078

Place’s Image in Latvia and Peculiarities of Its Perception in the

1 E-mail address

2 E-mail address

Place’s Image in Latvia and Peculiarities of Its Perception in the Context of Place Marketing

Viktorija Zaluksne1 Baiba Rivza2

Abstract.

Key words: JEL code: R11

Introduction

Marketing undertaken in the interests of a geographical

location is often referred to in literature as territorial

consistent strategic process that is closely related to the


ISSN 1691-3078

120

are visualised as a result of branding and thereby gain

Hypothesis:

Object:

Aim:

Tasks: to analyse theoretical issues involved in place



121


ISSN 1691-3078

Source: authors’ construction based on the data array of the opinion poll “Place Image in Latvia”


Character of the image of populated areas


respondents resulted in the distinguishing of ten factors


ISSN 1691-3078

122


Factors determining the uniqueness of the place (grouped


often characterised by objects and events that are

123


ISSN 1691-3078

place positions itself and engages its residents in this


Elements characterising the place image


The application of various place marketing approaches in populated areas in Latvia



ISSN 1691-3078

124

by personal attitudes of such people to their place of

resid

sense of belonging of the respondents to their place of

The results are presented graphically in the

have an effect on their sense of belonging to their place

ConclusionsThe authors of the present article analysed the

po

to objects that characterise the place rather rarely


Breakdown of respondents across their sense of belonging to their place of residence depending on their monthly income


125


ISSN 1691-3078

an effect on their attitudes and their sense

their sense of belonging to their place and their

Bibliography

Place Branding, H Stewart

Publications

Cities,

Investments, Industries, Residents and Visitors to

European Cities, Communities, Regions and Nations.

(On Brand). Riga:

Marketing v Rossii i za



ISSN 1691-3078

126

A. Zawojska Reputation of Public Administration: Agriculture-Related Agencies in

Poland Seen Through Farmers’ Eyes

1 E-mail address:

Reputation of Public Administration: Agriculture-Related Agencies in Poland Seen Through Farmers’ Eyes

Aldona Zawojska1

Abstract. The paper presents the concept of organisation reputation and applies it to public sector organisations

Key words:JEL code:

is largely evident and only occasionally supported by

people trust and even revere those

not to distinguish between persons elected

to legislative bodies, persons elected as executives,

persons politically appointed, and permanent civil

servants

Introduction A good reputation, even in darkness, keeps on shining.

A good reputation is more valuable than money.

127


ISSN 1691-3078

Reputation - conceptual backgroundThe concept of reputation has had a vital role in

Selected opinions about the roles played by reputation

A. Zawojska Reputation of Public Administration: Agriculture-Related Agencies in Poland Seen Through Farmers’ Eyes

a

Methodology/approach of own empirical research

1. Research design and sample characteristics

Table 1

Reputation as assessment and awareness

Reputation as assets

An intangible resource (assets) of organisation

Source: author’s compilation based on the literature review


ISSN 1691-3078



agencies in Poland: Agricultural Market Agency (AMA)

and Agency for Restructuring and Modernisation of

the budget allocated to the agricultural sector and rural

avoided a decline in GDP during the late 2000s recession

Table 2

Importance of reputation

Importance

)

behave opportunistically

suppliers and partners are less concerned about contractual hazards

( ).

Agency reputations can serve to enhance professional prestige

Source: author’s compilation based on the literature review


ISSN 1691-3078

2. Measures

by calculating the average of the 12 averages of the



in protecting agriculture and rural areas or perhaps they

do not think about the agencies generally but about their

It is possible that higher recognition of the ARMA

so they could not be generalised to other

Table 3

Sample characteristics, N=200

Characteristics2007 2011

Percentage

Gender Male

Age (years)

41-64

Education

Secondary

University

Good

Regular

Access to Internet

Up to 5

Up to 5

Source: author’s calculations based on the survey data


ISSN 1691-3078

130




Much of reputation literature concerns private

reputation in the public sector This paper is an initiative

and reveal that the surveyed agencies have neutral or a

all citizens (by putting a greater focus on the satisfaction

The research can contribute to both theory and practice

Bibliography

. The

Quarterly Journal of Economics,

). The Effect

Journal of Service Research,

.

Gaining and Sustaining

Competitive Advantage. Addison Wesley Publishing

Corporate Reputation Review

(2001).

European

The Forging of Bureaucratic

Autonomy: Reputations, Networks, and Policy

Innovation in Executive Agencies 1862-1928.

American

Journal of Political Science

The Role of Public Agencies in

Helping Rural Communities Build Social Capital: Case

Studies of the Interaction between the Wisconsin

Department of Natural Resources and Local

Communities

Review,

Table 4

Averages scores given to reputation attributes and overall reputation

AttributesAMA ARMA

2007 2011 Change 2007 2011 Change

acts in the best public interest

is politicized

overall reputation score

Source: author’s calculations based on the survey data

131


ISSN 1691-3078

(

from the Corporate Image

Business School Press.

Handbook of Strategic

Business and

Society Review

,

The Annals

of the American Academy of Political and Social

Science

Journal of

The Case for Bureaucracy:

A Public Administration Polemic

Corporate Communications,

Bank and Credit,

Journal of

Journal

of Applied Psychology

Corporate Communications: An International

Journal,


.Syrus, a Roman Slave: From the Latin.


Economics,

Quarterly Information

Finances


Reputation-Based Governance

Corporate

Reputation Review


.

Reputation and Sustained Superior Financial

1077– .

(2004).

: Some

Danish Evidence

Sticky Reputation: Analysing a Ranking

Corporate Reputation Review, ,

.

. European Journal of

.

Products as Returns to Reputation. The Quarterly

Journal of Economics,

–

Political Studies

Journal of Political Economy,

Journal of

Journal of

Organisational Behaviour,

Journal of the

,

.

Reputation. Business and Society,

Journal

of Public Administration Research and Theory

Governance.


ISSN 1691-3078

132



. The Economic Institutions Bureaucracy: What Government

Agencies Do and Why They Do It

133


ISSN 1691-3078

Development Possibilities of Farms in Latvia

1 E-mail address:


Rosita Zvirgzdina1

Modrite Pelse

Abstract.

Key words:JEL code:

Introduction

soon the living standard of developed countries has

eco

population being poor or near to the poverty threshold

e

the readiness of all enterprises and individuals to be

prepared for active participation in the increase of

research object is the

research subject

The aim

tasks1)

2)

3)

The methods

Research results and discussionThe increase in production and its productivity depends

take advantages of the ensured possibilities related to


ISSN 1691-3078

134

Finding and use of possibilities based on continually

the process of using his entrepreneur-capacity and

depends greatly on his ability to evaluate the factors

increase of the productivity in the enterprise and provide

—

—

—

—

—

If one characterises the size of farms involved in


135


ISSN 1691-3078

differs

substantial causes related to a different use of production

investments

Source: authors’ construction based on the inquiry results in 2010




ISSN 1691-3078

136

are considering the possibility of changing their activity

convinced that they are going to continue their activities

not contributed to the stability and sustainability in this

social capital

—

— changes in the used land area (ha) in the past

—

—

—

—

—

—

in different public agricultural organisations - the p-value

2

agricultural organisations ( 2

2

parties and public activities of religious organisations



137


ISSN 1691-3078

engaged only in agricultural

cooperatives


Table 1

Relation of public activities to farm growth criteria

Involvement of farm managers in public activities

ValueFarmed

land area

Land area

changes

Use of EU Funds

Material position

Farm viability

associations

p2

0.00027.772

0.001 0.0396.513

In public agricultural organisationsp

2

0.000 0.001 0.012

p2

In organised sport activitiesp

2 6.193

p2

Source: authors’ calculations based on the survey results of 2006

Table 2

Relationships between indicators characterising farm growth and farmers’ participation in cooperatives

Indicators characterising the economic growth of farmsValues

Cramer’s V2 p-value

0.000

0.000

Use of the EU funds 17.260 0.000

Material position 10.310 0.006

7.699 0.021

Source: authors’ calculations based on the survey results of 2006



ISSN 1691-3078

related to the social capital and potential possibilities

social organisations and participation in agricultural

Bibliography

Review

Starptautiskas investicijas

American Journal of Sociology,

Innovation and Entrepreneurship: Practice and

Systems of Innovation.

Retrieved:

Access:

Retrieved:

Latvijas statistikas gadagramata 2009.

Economic

Science for Rural Development: Proceedings of

Economic Science for Rural

Development: Proceedings of the International

Economic Science for Rural Development:

Disadvantaged Farmers and Problem Regions, The

Development of Farm Workforce.

of Agricultural Production and Entrepreneurship

Economic Science for Rural


“Vision

Entrepreneurship and Entrepreneur in Rural Areas

Economic Science for Rural Development:



ISSN 1691-3078


Proceedings of the

RURAL BUSINESS AND FINANCE2. Finance And Taxes


ISSN 1691-3078

140

S. Ancans

1 E-mail address

Sandris Ancans1

Abstract.

Key words:JEL code:

Introduction

not

not possible to keep the lat pegged to the euro and at

Research hypothesis

The research aim is to investigate several aspects of

tasks

1)

2)

3)

4)


comparative aspect

141


ISSN 1691-3078

Table 1

Code

Group or subgroup of goods and services

Latvia GermanyLatvia/

Germany

1995 2009 2010 2011 2005-2010 2010

01 Food and non-

alcoholic beverages

045

gas and other fuels

0455

06

07 Transport

0722

10 Education

Source: author’s calculations based on the CSB, Destatis

S. Ancans


ISSN 1691-3078

142

not occurred in the developed countries during the recent

2. Impact of the Balassa-Samuelson effect on

researched price differences across various countries and

nontradables – barber services – it reached a value of

3. Real interest rates in Latvia in comparative aspect

to achieve greater price stability – the only option is to

Table 2

2005 2006 2007 2009 2010

GDP

e

Prices of goods

Prices of services

and personal care

services

Source: author’s construction based on the CSB

S. Ancans

143


ISSN 1691-3078

dif

of the lat that caused interest rates on assets in lats to

rates in the beginning of the year and an increase in

zone

o

in

Table 3

2005 2006 2007 2009 2010

Nominal interest rates

Real interest rates

Source: author’s calculations based on the CSB, Destatis

S. Ancans


ISSN 1691-3078

144

Conclusions

in developed countries have to be taken into

BibliographyEconomics

:

:

:

integracija Eiropas Savieniba

aspekts)

of Latvia. Integration of Latvia into the European

Retrieved: http://

International

Economics

Economics

S. Ancans

145


ISSN 1691-3078

1 E-mail address:

Agriculture Funding Measures in Lithuania:Demand and Opportunities

Vilija Alekneviciene Lina Martirosianiene1

Abstract.

Key words: JEL code

Introduction

contributing to the leadership of agricultural sector:

changes: large drought in Russia that destroyed the yield

caused the decline of agricultural products supply in the

and 4) to evaluate the share of credits issued for


ISSN 1691-3078

146


2005-2006 and have stayed stable high during the

Spain

entities are being funded through direct assignations that

assignations are annual assignations provided to support

Source: authors’ construction based on the data of National Paying Agency, Ministry of Agriculture

147


ISSN 1691-3078

Fund presented the project of agricultural funding

346 contracts regarding the preferential credits

credits are very often unavailable due to the deposit

issues guarantees to the banks for the credits granted


ISSN 1691-3078

Table 1

The EU support for rural development in Lithuania in 2007-2010

2007 2009 2010 Total

114355 134072 135245 520359

2731.62

Source: authors’ calculations based on the data of National Paying Agency, Ministry of Agriculture

0

50

100

150

200

250

2004 2005 2006 2007 2010

5

4

5 247 2 246

4

150

57 5

106 4

143 142 5 145 3

3

7

Guarantees provided

Source: authors’ construction based on the data of Rural Credits Guarantee Fund

Granted credits and provided guarantees for Lithuanian

Source: authors’ construction based on the data of Rural Credits Guarantee Fund

Credits granted and guarantees issued to Lithuanian agricultural entities from various credit


ISSN 1691-3078

agricultural entities insuring their plants) of unreturned

service – guarantees not only for the banks and credit

The average trend of change of credits granted for

The effectiveness of using the credits shall be

change of total agricultural production in 2004-2010

Table 2

Year

Credits, total Credits for agriculture and forestry

Amount million LTL

Amount million LTLbasic chain basic chain

2004 - -

2005

2006

2007

2010

Average X X X x

Source: authors’ calculations based on the data of the Bank of Lithuania


ISSN 1691-3078

150

Conclusions Agricultural subjects are supported by direct

The average changing rate of credits granted to

The average changing rate of credits granted to

The average changing rate of total agricultural

that total agricultural production during the analysed

Bibliography

–

Table 3

Rates of changes of total agricultural production and ratio of credits granted for agriculture and

YearTotal agricultural

production, million LTL

Ratio of credits granted for agriculture and forestry and total

agricultural productionbasic chain

2004 -

2005

2006

2007

2010

Average x 16.07

Source: authors’ calculations based on the data of the Bank of Lithuania, the Department of Statistics

151


ISSN 1691-3078

http://

Retrieved:

Retrieved:

Apzvalgos/

Retrieved:

Access:


ISSN 1691-3078

152

Value Drivers of Multifunctional and Sustainable Agricultural Organisation: Cash Flow Discounting Approach

Vilija Alekneviciene1

Neringa StonciuvieneDanute Zinkeviciene

Abstract.

Key wordsJEL code G32

Introduction

The object of the research is value drivers of

Research results and discussion1. Value drivers of conventional agricultural

organisation

Fernandez (2007) raises an issue about discounted

1 E-mail address

V. Alekneviciene et al. Cash Flow Discounting Approach

153


ISSN 1691-3078

have several approaches concerning the discount

2. Value drivers of multifunctional and

sustainable agricultural organisationMultifunctional and sustainable agricultural



ISSN 1691-3078

154

2

functions of agricultural organisation – ensuring the

The value of agricultural organisation is also

typology of public goods: agricultural landscapes –

can be obtained through the grants and through the

state that the correct social discount rate (SDR) should

and Farley (2007) state that the discounts function

3. The model of value drivers of

multifunctional and sustainable agricultural

organisation

agricultural organisation based on the previous research

organisation depends on such drivers as NOPAT (the


155


ISSN 1691-3078


The model of value drivers of multifunctional and sustainable agricultural organisation

Conclusions



ISSN 1691-3078

156

and functionality (grants and subsidies for increasing

Bibliography

Science of the Total Environment

Journal of

Corporation Law

Journal of Environmental

Journal

Journal of Finance

Journal of Accounting Research

Uslovije Obespecenija Konkurentospasobnosti

Naucnij Zurnal

KubGai

Environmental and Resource Economics

Final Report

Journal

Energy Procedia

Land Economics

Engineering Economics,


Journal of Applied

Corporate Finance

Report

prepared for the Petoskey Area Open Space Task

Force.

International Journal of

Proceedings


157


ISSN 1691-3078

of Lithuania.

Report Prepared for

the Scottish Government’s Rural and Environment

Research and Analysis Directorate (RERAD/004/09)

Ecological Economics

Kluwer

Academic Publishers, Dordrecht, the Netherlands

veiksniai (Agricultural G

R aising Factors)

Theory and Studies for Rural Business and

Infrastructure Development

for Rural Business and Infrastructure Development


in Precision Agriculture – Is it Worth the


Technology

and Studies for Rural Business and Infrastructure

Development.

Ecological Economics


http://



ISSN 1691-3078

1 E-mail address:

Elaboration and Approbation of Methodology for Estimating the

the Regions of Latvia

Iluta Berzina1

Abstract.


Introduction

protected areas (PA) and all four national parks (NP)

recent – it has been done since the second half of the

20th

is carried out despite lacking standards of research


ISSN 1691-3078

and situation analysis on national parks and their nearby

territories carried out by these organisations are little and

Research main results and discussion1. The theoretical background for elaboration of a methodology

impact are

elaborated and repeatedly usable concept or strategy 2

3 and guidance4

5

2 3 4 5


ISSN 1691-3078

160

Michigan State University in the United States (US)

2. Main components of the elaborated methodology

—

—

—

—

—

— the type of the research in case the elaborated

—

—

—

—

—

—

161


ISSN 1691-3078

—

—

methodology

the year 2010 –surveys of 1443 NP visitors and

of e

alternativehypotheses (

Table 1

No. Type of economic impact Gauja NP Kemeri NP Razna NP Slitere NP

DEI

IEI

TEI

Source: author’s calculations based on the data from NP visitors’ surveys

Table 2

visitors in 2010 per NPs

No. Gauja NP Kemeri NP Razna NP Slitere NP

critical value

(1-a)

0 rejected / not rejected rejected rejected rejected

Source: author’s calculations based on Arhipova I. et al., 2006


ISSN 1691-3078

162


the necessity for pre-conditions relating to data

Bibliography

Statistika ekonomika

(Statistics in Economics and Business. Solutions

of Foreign Terms)

Proceedings

Science for Rural Development”, ,

. Proceedings

and New Educational Technologies”,

Sustainable Tourism in Protected Areas: Guidelines

Annals of Tourism

Research,

The

The Research.

Working Paper of the Finnish

Forest Research Institute.

Research

The Law of the Republic of Latvia.

163


ISSN 1691-3078

Working

Paper of the Professional Rural Tourism

Association of Latvia “Lauku celotajs”. Retrieved:

Journal

of Travel Research

Data Collection and Analysis for

and Tourism: a Practical Guide

Tourism


ISSN 1691-3078

164

Standard vs. Behavioural Finance: The Case of Capital Structure in Latvia


Irina Berzkalne1 Elvira Zelgalve

Abstract.

Key words:JEL code:

1 E-mail address:

Introduction

This

but that he can base his capital structure decisions on

The research hypothesis – capital structure

The aim of the paper is to analyse and assess the

tasks: 1) to analyse the theoretical aspects of

the capital structure of 5 enterprises (listed on the Stock

The methods of the research: analysis and synthesis


theoretical aspects

Delusions and

The Crowd: a Study of the Popular

Irrational Exuberance by

165


ISSN 1691-3078

in Tech Stock Carve-Outs

Beyond

and the Psychology of Investing

The favoured approach to the topic of behavioural

2006):

—

behaviours or biases of individual investors that

—

by challenging the bases for these three underlying

—

—

—

precisely because it is perceived as being so highly

2. Recent publications on behavioural capital structure

authors apply behavioural consistency theory to corporate



ISSN 1691-3078

166

that the leverage levels of the sector and leader for the

Latvian companies

(2

Table 1

Correlation between the share prices of the companies in the study

No. JSC Ventspils

NaftaJSC SAF

JSC Olainfarm

JSC Latvijas Kugnieciba

JSC Grindeks

1

1

1

1

1

Source: authors’ calculation based on the data by NASDAQ OMX Riga from 26 May 2004 to 16 December 2011

Source: authors’ construction based on the data from annual reports from 2002 to 2010

The structure of assets and the debt ratio of the companies in the study, in 2002 and in 2010


167


ISSN 1691-3078

2

2

2

Source: authors’ construction based on the data from the annual reports and NASDAQ OMX Riga

Correlation between the debt ratio and share price of JSC Olainfarm and

Table 2

No. Company YearLiquidity

ratioROS* ROA* ROE* RCA* RFA*

Source: authors’ calculation based on the data from the annual reports



ISSN 1691-3078

yi 0 1 i 2 i n i i

yi

–

–

–

Conclusions

Table 3

The summary of applied models for JSC Olainfarm and JSC Grindeks

No. Model Description

JSC Olainfarm

share price (average) and share

1st period: 2nd period:

price (average)

JSC Grindeks

share price (average) and share

Period 1:

Only share price (particular

Period 2:

Source: authors’ calculation based on the data from the annual reports, NASDAQ OMX Riga, Financial and Capital

Market Commission, the Central Statistical Bureau



ISSN 1691-3078

on the data available and they are also subject to the

2

R2 2

Bibliography

Journal of

Financial Economics,

Retrieved:

Retrieved:

Journal of Applied Corporate Finance

Behavioural Finance and

Business Education and Technology

Journal,

Retrieved:

International

Research Journal of Finance and Economics,

The Quarterly Journal of Economics,

Retrieved:

The

Journal of Behavioural Finance,

Bank

of Valleta Review,

https://

articles/insights/asset-classes/investing-in-

This paper has been supported by the European Social Fund within the project «Support for Doctoral Studies at



ISSN 1691-3078

170

K. Boratynska

Predicting Bankruptcy of Selected Companies from The Polish Meat Sector1

Katarzyna Boratynska2

Abstract.

Key words: JEL code: G33

Introduction

Study aim, method and tasks

1)

2) to identify and evaluate the factors that drive the

3) to assess the bankruptcy risk of selected Polish

1 1 2 2 n n 0

1

2 E-mail address:

171


ISSN 1691-3078


description of the analysed enterprises representing the meat sector

Table 1

Model A Model B Model C Model D Model E Model F Model G

rP (2)

WO/A

WN/P

KW/A

WO/KF

KO/MT

P/A

0)

Source: Maczynska E., Zawadzki M., 2006

Table 2

Numerator Denominator

rP (2) Sales revenues Revenues in the previous

year

Return on assets WO/A Operating result Total assets

Return on sales WN/P Sales revenues

assets result for 3 years

Total assets

KW/A Total assets

Adjusted ROE ratio Total assets

Debt service coverage

depreciation

Total liabilities

WO/KF Operating result

assets

KO/MT Working capital

Asset productivity P/A Sales revenues Total assets

Relative value of assets

value of assets

Source: Maczynska E., Zawadzki M., 2006

K. Boratynska


ISSN 1691-3078

172

concentration of hog and bovine livestock supply caused

the debts due to the bank lenders arising under loans and

sureties that are subject to restructuring as stipulated by

K. Boratynska

173


ISSN 1691-3078

Table 3

Financial ratios used for calculation of the IES PAS models

Enterprises Years

2005 2006 2007 2009 2010rP Polski Koncern

-

WO/A Polski Koncern

WN/P Polski Koncern

Polski Koncern

KW/A Polski Koncern

Polski Koncern

Polski Koncern

WO/KF Polski Koncern

Polski Koncern

KO/MT Polski Koncern

P/A Polski Koncern

Polski Koncern

Source: author’s calculations based on the Financial Statements of researched companies

K. Boratynska


ISSN 1691-3078

174

Table 4

Results of the models created by Maczynska and Zawadzki at the IES PAS

Enterprises Years

2005 2006 2007 2009 2010

Model A Polski Koncern

Polski Koncern

Polski Koncern

Model D Polski Koncern

Model E Polski Koncern

Model F Polski Koncern

Model G Polski Koncern

Source: author’s calculations based on the Financial Statements of researched companies

2. Study results

return on sales noted by all the analysed entities in the

highlighted that the results of the traditional ratio analysis

K. Boratynska

175


ISSN 1691-3078


conclusions:

ongoing basis and cannot be the only tool used to

Bibliography

K. Boratynska


ISSN 1691-3078

176

A. Danilowska

Cooperative Banks and a Problem of Adverse Selection in Agricultural Credit Market

Alina Danilowska1

Abstract.

Keywords:

JEL code: G21

Introduction

the facts to anyone other than an on-site observer

The better informed party is

tempted to engage in precontractual opportunism2 in

second”

Materials and methods

1 E-mail address:

2

177


ISSN 1691-3078

The problem of adverse selection in credit market

to credit because of high transaction costs related to the

The characteristics of agricultural credit market in Poland

sector3

The data about the internal structure of agricultural

prevailed and a noticeable increase of their share in total

3

Table 1

The characteristic of agricultural credit market

Year

Credits for agriculture/credits

sector

Credits for individual farmers/agricultural credits

Share of cooperative banks in agricultural

credits

Preferential credits for agriculture/ credits for

agriculture

2002

2003

2004

2005

2006

2007

banks 2005 - 2010 GUS, Warsaw 2003, 2004, 2005, 2011

A. Danilowska


ISSN 1691-3078

How cooperative banks sort out the problem of adverse selection in agricultural credit market

Table 2

The role of cooperative banks in rural credit market

2000 2003 2005 2007 2009

Share of cooperative banks in individual

Share of cooperative banks in agricultural

Share of cooperative banks in individual

Monitoring of banks 2005 - 2010 GUS, Warsaw 2003, 2004, 2005, 2011

Table 3

The role of agricultural agents for the banks by the organisational form

2002 2003 2005 2006 2007 2009

-cooperative banks

-cooperative banks

Monitoring of banks 2005 - 2010 GUS, Warsaw 2003, 2004, 2005, 2011

A. Danilowska


ISSN 1691-3078

The characteristic feature of cooperative banks is

banks are generally very centralised and there is rather

role4

It is interesting that cooperative banks evaluate very

Conclusions

selection and try to sort out this through the

cooperative banks and that the agricultural activity is

4

Table 4

The impaired loans by groups of clients and banking sectors

2009 20102009 2010

CoB CmB CoB CmB CoB CmB

-individual entrepreneurs

-enterprises

individual entrepreneurs

-enterprises

Source: Report on the condition of Polish banks in 2010. The Polish Financial Supervision Authority,

www.knf.gov.pl/en/about_the_market/Banking

A. Danilowska


ISSN 1691-3078

Bibliography

The Quarterly Journal of Economics

Determinants of Transaction Costs of Agricultural

Credit and Loans).

Institutions and

Economic Theory

. Agricultural Finance and Credit

Infrastructure in Transition Economies. Focus on

South Eastern Europe

Capitalism)

A. Danilowska


ISSN 1691-3078

W. Heijman et al. Regional Competitiveness, Social and Intellectual Capital

Regional Competitiveness, Social and Intellectual Capital

Wim Heijman1 Johan van Ophem2 Wageningen University

Urszula Bronisz3

Abstract.

Key words: JEL code: R11

1 E-mail address:

2 E-mail address:

3 E-mail address:

Introduction

a way of discussing the

relative performance of economies in a benchmarking

sense. It can help identify areas of the economy that

are lagging behind but not the reason for those lags

of variables grouped together under Technology and

those

tangible substances that count for most in the daily lives

of people: namely good will, fellowship, sympathy, and

social intercourse among the individuals and families

who make up a social unit“

literature concerning social capital is focused on using it

”hidden values


ISSN 1691-3078

of individuals, enterprises, institutions, communities

and regions that are the current and potential sources

of value creation”;

”all

intangible resources available to a country or a region

that give relative advantage, and which in combination

.

of social capital and intellectual capital on regional


—

—

—

—

—

—

—

ghest

Table 1

Potential weighting scenarios

Business density

Knowledge based

business

Economic participation

Productivity Earnings Unemployment

1 1 1 3

1 1 1 1 1 1

1 3 1 1 1 1

1 1 1 3 1 1

Input-biased 3 3 3 1 1 1

Output-biased 1 1 1 1 3 3

Activity-led 1 1 3 1 1 1

Earnings-led 1 1 1 1 3 1

3 1 1 1 1 1

Source: Huggins, 2003



ISSN 1691-3078

that less developed regions particularly face challenges

the absence of a basis innovative capacity in business

the other regions that have an above average GDP

—

—

—

The authors consider these factors as crucial

Table 2

RegionIndex of social

capitalRank

Index of competitiveness

RankGDP per capita

Rank

7 7

2 1 1

pl21 Malopolskie 3 3 11

pl22 Slaskie 1 2 2

11 10 16

pl32 Podkarpackie 6 13 15

14 16 13

pl34 Podlaskie 15 14

pl41 Wielkopolskie 5 3

5 12 6

7

pl51 Dolnoslaskie 4 4 4

pl52 Opolskie 16 14 10

10 11

12 15 12

13 6 5

Source: authors’ calculations based on the statistical data



ISSN 1691-3078

Table 3

Intellectual capital, factor loadings and relative weights of its relevant variables*

Variable Factor loading Relative Weight**

Participants of doctoral studies (persons)

Participants of postgraduate studies (persons)

Patents granted

Table 4

Index of intellectual capital of the 16 Polish regions

Region Code Index of intellectual capital Rank

7

MA 1

Malopolskie MP 2

Slaskie 3

Podkarpackie PM 10

Podlaskie PD 12

SW 14

15

Wielkopolskie WP 4

Dolnoslaskie DS 5

Opolskie OP 16

KP 11

PM 6

WM 13



ISSN 1691-3078

Conclusions

Bibliographyntellectual

Paper for

the 7th

Regional Innovation Strategies

in Poland: Lessons and Recommendations

Journal of Intellectual Capital

Intellectual Capital and the New

Wealth of Nations II

Capital

America Journal of Sociology

26

Competitiveness and Industrial Policy in Northern

Ireland

Journal of

Human Resource Costing and Accounting

Transition, Cohesion

and Regional Policy in Central and Eastern Europe

New Possibilities in

Education

Human and Social Capital and

Regional Development

Regional Studies

Journal of Global Information



ISSN 1691-3078

Journal

Social

Capital and Growth

(Problems of

Development of Border Regions in Eastern

Poland

Housing Policy Debate

Regional Studies

The Global Competitiveness Report

2004-2005



ISSN 1691-3078

A. Irmeja, I. Leibus

1 E-mail address

2 E-mail address:

State Aid for Self-Employed Persons in Latvia and Other European Union Member States

Alona Irmeja1 Inguna Leibus2

Abstract.

Key words:

Introduction

aim of the research


challenges related to starting up a business plan are

1)

2)

3)


ISSN 1691-3078

4)

5)

6)

enable people to access credit in order to set up a

business has been recognised through the creation of the

In the Czech Republic

Enterprise Estonia offers start-up grants of

In Spain

In Austria

Gründerbonus

and business in Latvia

wishing to set up a business

Many of the national articles report that support

business have been or are in the process of being set

or the Republic of Macedonia) or business incubators (for

In Bulgaria

direct services for facilitating the initial stages of their

In Ireland

Slovakia in



ISSN 1691-3078

16 entrepreneurial and technological incubators

The United Kingdom has an established single

and training courses for before and after a business is

Eight business incubators are to be set up in Latvia

3. The provision of training, mentoring and advice

The Lithuanian

opportunities for pursuing activities under a business

In Luxembourg and Croatia

Austria and Iceland

Table 1

Business incubators by region and area of activity in Latvia

Region Name of incubator Area of activityNumber of companies

Riga

General partnership 53

reative industries business incubator Andrejsala

Foundation

52

Society 42

42

40

Aizkraukle

Source: authors’ calculations based on Biznesa inkubatori, 2011



ISSN 1691-3078

of professional consultancy services for these potential

In Latvia

for conducting business and business start-ups or self-

for

The State Employment Agency offers help to registered unemployed persons. receive the necessary help and support for business or

— consulting business plan preparation and

—

—

—

burdens

being taken on the national level to reduce bureaucracy

Greece

great

The Latvian

93

250

313

20

80

82

0 50 100 150 200 250 300 350

2008

2009

2010

year

numbers

submitted business plans approved business plans

Source: authors’ calculations based on Pasakumi komercdarbibas vai…, 2011

Submitted to and approved business plans by the State Employment Agency



ISSN 1691-3078

In Slovakia

In Portugalto have contributed to business creation by reducing

5. Favourable tax or social security conditions for the self-employed

In Slovakia

In Romania

In Sweden

United Kingdom has also

Latvia

6. Measures to increase motivation towards self-employment

In Germany

In Latvia



ISSN 1691-3078

activities that spread the best practices in starting

Luxembourg

ran the Trau dech — maach dech selbststänneg


countries have policies in place to support self-

increase understanding of the opportunities offered

types of incentives could not generate desired

Bibliography Innovation Phenomenon of the

21st Century.

Industrial

and Corporate Change

Retrieved:

Journal pf Political

Economy,

Journal of Policy

Journal of Business Venturing

Economica



ISSN 1691-3078

International Journal of Sociology

Southern Economic Journal



ISSN 1691-3078

Problematic Aspects of Financial Reporting in Latvia

Anna Jesemcika1

Abstract.

Key words:

JEL code:

A. Jesemcika Problematic Aspects of Financial Reporting in Latvia

1 E-mail address

Introduction

The aim of the research – to ascertain the

Tasks of the research – to study the criteria of

accounting and representation of the changes of the

Methods of the research

Research results and discussionAnalysis


ISSN 1691-3078


The presence of single principles of accounting is

The accounting policy is changed only if:

—

—

—

The approved accounting policy shall be applied

The accounting policy is not changed if it is:

—

—

It is not practically possible to apply the accounting

The annual report ensures the evaluation of the

concern business is not applicable in the accounting policy


ISSN 1691-3078

related to the basic indicators of the enterprise in

of the reporting period disclosed in the period or at the

end of the period are adjusted before the approval of

If the accounting policy has been changed in

data of the previous reporting periods is disclosed in the

Table 1

Criteria for setting the principle of materiality

No. Criteria

0 – 1 000 000

1 000 000 – 3 000 000

10

7

5

Net turnover 1

Total assets

1 000 000 – 10 000 000

2

1

Source: author’s construction based on legal enactments of the Republic of Latvia

Table 2

No.

Balancesheet

or loss account

Statement of changes in equity

under construction

under construction

of the previous period

Source: author’s construction based on legal enactments of the Republic of Latvia



ISSN 1691-3078

voluntarily changed the accounting policy regarding the

of objects under construction include the direct costs

incurred in respect of the constructed object before its

Problems

end of th

Issues related to the application of fair value in

by different evaluations:

— foreign currency is disclosed by the real value

—

— accounts receivable and accounts payable - usually

—

—

evaluations of assets and liabilities in the balance sheet as

cial

Accountants do not apply the principle of fair value

—

—

—

The accounting by fair value and the disclosure

The disclosure of assets by fair value leads to the

data that could be used for the analysis of the enterprise

disclosing their potential and future opportunities in

is it necessary to recalculate the reporting data if an

this approach in practice is doubtful and the opinions on


The paper analyses the criteria of choice and

retrospective recalculation of indicators for the past

years related to the change of the accounting policy



ISSN 1691-3078

Issues related to the application of fair value in

Bibliography

The Concept of Fair Value and

International Financial Reporting Standards (IFRS)

un budzets (European Union Financial Resources



ISSN 1691-3078

J. Lascenko, A. Jesemcika Improvement of Internal Control System of Agricultural Enterprises

Improvement of Internal Control System of Agricultural Enterprises

Jelena Lascenko1

State Revenue Service

Anna Jesemcika

Abstract.

The aim of the research

tasks —

—

—

—

—

Key words:JEL code:

1 E-mail address

Introduction

control through the general analysis of enterprise

The authors believe that the control science should

The paper aims

cycle:

1)


ISSN 1691-3078

200

an increase in reserves of unaccounted agricultural

2)

3)

analysis:

—

—

—

—

—

increase of production based on biased and unbiased

—

Research results and discussionInternal control of crop production output

The analysis of crop production process in agricultural

The data of Figure 1 lead to the conclusion that the

Source: authors’ construction based on Savickaja G., 2006

Scheme for the analysis and internal control of crop products



201


ISSN 1691-3078

The range of internal control issues offered by the

Internal control of livestock production The initial stages of livestock production and crop

factors or reduce their negative effect on the livestock

The analysis of current reserves in livestock

production enterprises and evaluation of their


Directions of reserves for the increase of the volume of crop productivity




ISSN 1691-3078

202

Internal control of agricultural products prime cost

The authors believe that the analysis and control

—

—

—

—


Directions of reserves for the increase of the volume of livestock productivity


Scheme for the analysis and control of agricultural production prime cost


203


ISSN 1691-3078

of internal control but also ensures creation of control

—

—

her research has o

, (1)

–

–

–

–

– additional costs necessary for the use of

–

– reserve for the increase of production

outlines the correlation occurred in the production

control that could be practically applied in a particular

Internal control of the use of material resources

—

—

—

—

— analysis and control of the level of production

and control of effective use:

—

—

—

—

resources:



ISSN 1691-3078

204



of internal control process in agricultural

Objects of the production process in crop and

Internal control and analyses of the agricultural

is useful to develop technological procedure

It is necessary to analyse and control reserves

belonging to the enterprise in the scope of internal

Agricultural enterprises have to evaluate the

Bibliography

http://

Kontrolj

(

Formirovanije

(

Organisations

kontrolja (

Retrieved: http://

ucoz ru/publ/ vnutrennego kontrolja/

podkhody

dejateljnosti predprijatij (Analysis of Business

Activity of Organisations Moskva: Novoje

652

Ucjot biologicjeskih aktivov v sootvetstviji s

205


ISSN 1691-3078

1 E-mail address:

Mortgage Lending Market Development Tendencies Within the Context of Global Financial Crisis

Gunita Mazure1

Abstract.


Introduction

recently as a catalysing factor to change the traditional

Mortgage lending has been analysed and discussed

research hypothesis

aim of the research

research tasks have been advanced to achieve

1)

2)


ISSN 1691-3078

206

Research results and discussionAnalysis of residential mortgage debt to GDP ratio in selected world countries in relation to the changes of interest rates on mortgage loans

the one related to the Great Depression and it is

contributed to the failure of key businesses declines in

category – transition countries and periphery – household

debt levels have been strongly rising in the past 15 years

Source: author’s construction based on Hypostat, 2011

207


ISSN 1691-3078

Interest rate developments on new mortgage loans

also in order to contain the sharp deterioration in the

several consecutive cuts in their respective policy rates

Source: author’s construction based on Hypostat, 2011


ISSN 1691-3078

Development dynamics of mortgage lending market in Latvia

—

—

—

—

Table 1

YearMortgage

loansmln. LVL

previous year

base year

Average per one

resident, LVL

previous year

Average per one

household, LVL

previous year

2004 100 - 100 100

2005

2006

2007

2010

Source: author’s calculations based on the Bank of Latvia and CSB data (2004-2010)


ISSN 1691-3078

construction and reconstruction of housing started to


construction and reconstruction of housing started

Bibliography

Retrieved: http://

absalonproject.com/.../Principle-of-Balance-

Access:

Usefulness of the APR for Mortgage Marketing in

Retrieved:

. 2012.

2012.

Hypostat (2011). Hypostat 2010. A Review of


ISSN 1691-3078

210

2012.

of Integration of the EU Mortgage Markets - Report

http://

.

2012.

211


ISSN 1691-3078

Elements of the System of Financing Social Transfers and Assessment of Factors Affecting Them in Latvia

1 E-mail address:


Baiba Mistre1

Aina Dobele Dr.oec.

Ilva Rudusa

Abstract.

Key words:.

JEL code:

IntroductionSocial transfers consist of state pensions and

Hypothesis

The research aim

tasks

—

— to assess the changes in the state social insurance

—


The consolidated budget is divided into the central

is divided into the basic budget and the state social


ISSN 1691-3078

212

The state social insurance special budget is divided

Source: authors’ construction based on laws of the Republic of Latvia


213


ISSN 1691-3078

social insurance contributions every year for respective

rate by type of social insurance affects changes in the

if revenues and a budget surplus of previous years in any

Table 1

Rates of state mandatory social insurance contributions for certain categories of taxpayers

Status of socially insured person 2001 2003 2009 2010 2011

Total rate

Rate for employers

Rate for employees

Total rate

Rate for employers

Rate for employees

-

Source: authors’ construction based on the Cabinet Regulations No. 452, 613, 1027, 1557, 1199



ISSN 1691-3078

214

to the proportion of special budget revenues by taking

2. Analysis of the state social insurance special budget

To assess the role of the state social insurance special

The state social insurance special budget is analysed

increase in revenues of the state social insurance special

The increase in revenues of the state social insurance


Table 2

Latvia in 2002-2010, mln LVL

YearGDP (current

Social insuranceState social

2002

2003

2004

2005

2006

2007 123

2010

Source: authors’ calculations based on the CSB and Treasury data

215


ISSN 1691-3078

3. Analysis of the socio-economic factors affecting the state social insurance special budget

socially insured persons and the revenues of the special

ii rXâ â Y 10i

i

i

i

ri

An analysis of the result produced by the above-


Table 3

Changes in the state social insurance special budget in Latvia in 2001-2010

YearRevenues, mln LVL

Expenditures, mln LVL

Current year surplus/ mln LVL Revenues Expenditures

2001 - -

2002

2003

2004

2005

2006

2007

2010

Source: authors’ calculations based on the Treasury data

Table 4

special budget in Latvia in 2002-2010

Indicators Special budget revenuesSpecial budget expenditures

social contributions

Source: authors’ calculations based on the CSB and SSIA data


ISSN 1691-3078

216

1000

1050

1100

1150

1200

1250

2002 2003 2004 2005 2006 2007 2010

year

nu

mb

er,

th

sd

0

50

100

150

200

250

300

350

400

450

500

LV

L

Source: authors’ construction based on the CSB and SSIA data

Changes in the factors affecting the state social insurance special budget in Latvia in 2002-2010

R2

950

1000

1050

1100

1150

1200

1250

900 920 940 960 980 1000 1020 1040 1060 1080 1100

Source: authors’ construction based on the CSB and SSIA data

Relationship between the number of employed persons and the number of socially insured persons in Latvia in 2002-2010


217


ISSN 1691-3078

socially insured persons decreased but they did not fell

social insurance special budget and in social security in

Conclusions

social transfers is revenues of the state social

BibliographyConcept on the Stability of Social Insurance System

in a Long-term

. Access:

2. Explanations to Revenues and Expenditures of

the State Special Budget by Programme and

Subprogramme in 2002

3. Explanations to Revenues and Expenditures of

the State Special Budget by Programme and

Subprogramme in 2003

4. Law of the Republic of Latvia “On State Social

Insurance”

”The Application of Sustainable Development:

Critical Assessment”

In: European Integration Studies.

Proceeding

for Rural Development 2009”

8. Regulations Regarding Distribution of the Rates for

Type of Social Insurance in 2001: Cabinet Regulations

No. 452 of 19 December 2000 http://









No. 1577 of 22 December 2009 Retrieved: http://




13. Revenues and Expenditures of the State Special

Budget by Programme and Subprogramme in 2004

Retrieved:



Retrieved:



Retrieved:



Retrieved:



Retrieved:


Budget by Programme and Subprogramme

in 2009



ISSN 1691-3078


Budget by Programme and Subprogramme

in 2010 20.



ISSN 1691-3078

A. Prohorovs, I. Jakusonoka Financing of Innovation System Development and Attraction of Private Capital

1 E-mail address:

2 E-mail address:

Financing of Innovation System Development and Attraction of Private Capital

Anatolijs Prohorovs1

Ingrida Jakusonoka2

Abstract.

Key words:JEL code:

Introduction

Innovation funding sources depend on the

The tasks are: 1) to characterise challenges that

Data sources and research methods. The authors

t

Joseph Ghalbouni and Dominique Rousies


th

th


ISSN 1691-3078

220


Product innovation

Process innovation’

Position innovation’

Paradigm innovation’- changes in the underlying

and detailed national strategy in the transition

—

—

—

shares (IPO) and selling the shares either on the national

Joseph

Ghalbouni and Dominique Rousies

October of 2010 analysed the reasons for rapid shrinking

Joseph Ghalbouni

and Dominique Rousies


Providers of venture capital funds and their legal organisation

221


ISSN 1691-3078


Source: authors’ construction based on Cannice Mark V., 2011; Boslet M., 2012


The authors of the paper have analysed the


ISSN 1691-3078

222


(Figure 3):

Public administration factors

private venture capital to various research and education

Imprimatur

and AB.LV Private Equity

Zalas gaismas investicijas

is no state governance and coordinating institution that

(technological parks for innovative projects and business

Imprematur Capital

Baltcap

Business environment

developed business culture and the application of

Research and education institutions

understanding of researchers and inventors of the

these universities have not established a close link

Informational support

223


ISSN 1691-3078

reaktors, SEED forums

Connekt Latvija

of innovative technologies in addition to the selection of a


Several approaches can be applied to the selection

specialists that understand venture capital long-


It is necessary to start the education of high-level

specialists in the area of technology transfer and

venture capital funding (initially attracting those

cooperation should be activated and coordinated

research and other organisations involved in the

is possible to strengthen and activate venture capital

Bibliography

)

Europe 2020 Flagship Initiative Innovation

Retrieved:

Table 1

Investment elements included in Innovation Union Scoreboard 2011

ENABLERS EU27 EE LV LT FI SE

Finance and Support

N/A N/A N/A

FIRM INVESTMENTS

Source: authors’ construction based on Innovation Union Scoreboard 2011 (IUS 2011)


ISSN 1691-3078

224


Innovation Union Scoreboard 2011 (7 February

http://

Access:

In:

Retrieved:

. Access:

Retrieved:

225


ISSN 1691-3078

Dairy Cooperatives in Poland

Michal Soliwoda

Abstract.


Introduction

the level of provision of TFA and its rational usage in the

are the essential carrier of the production capacity of

it is necessary to reveal hidden reserves of productive

according to accounting and reporting rules (including

be characterised by the high level of productivity (in

Aim, methodology and scope of research

then tested:

positively affect the productivity of TFA in dairy

The research period covered the years 2004 -

cooperatives operated as independent entities at the date


ISSN 1691-3078

226

Table 1

Set of independent variables used for the model of multiple regression

Designation Description of variables

Structure of funds

1

2

3

4

5

6

Relations concerning liabilities/ currents assets

7

10

11

Source: author’s construction

Table 2

Descriptive statistics for variables used for the model

Variables Average Median Minimum Maximum SD

y

1

2

3

4

5

6

7

10

11

Source: author’s calculations

227


ISSN 1691-3078

1 11

2

4 6 regards

1 on

subsets cover the relations that depict the structure of

MARS)2


4 5

7

7

4

7

1

2

Source: author’s calculations in STATISTICA 9.1 (screenshot)


ISSN 1691-3078

also a considerable variation in the accounting policy for

2 3 4 7

the variation of the dependant variable: productivity

4 7

Table 3

Impact of selected variables on the productivity of TFA: panel model

Standard error T-statistics p-value

4*

7*

3

6

11

R-square Standard error of estimation

Adjusted R-square

F-statistics


Table 4

Impact of selected variables on the productivity of TFA: panel model

Description y

Average (observed)

SD (observed)

Average (predicted)

SD (predicted)

Average (residuals)

SD (predicted)


Table 5

Parameters of modelling - MARSSplines

Description y

Threshold

Enabled



ISSN 1691-3078

The graph depicting the observed values as a function

y = x

Conclusions s

leads to the conclusion that taking care of proper

Y = 1.68401763977268e+000 + 7.51734008122576e+000*max(0; X7-3.01737480141621e-001) - 3.77384222295297e+001*max(0; 3.01737480141621e-001-X7) + 3.58525678393210e+000*max(0; X4-4.83304418090643e-001) - 1.30376843808996e+002*max(0; X3-5.14903680487157e-001) + 3.82661958395429e+000*max(0; X2-5.45683907010272e-001) - 2.57287445291785e+001*max(0; 1.53205456245919e-001-X9) + 1.40795035926849e+002*max(0; X3-5.38111863533051e-001) + 1.82626235996917e+001*max(0; X3-3.30609413595912e-001) - 7.17327292331333e+000*max(0; X3-2.19745728671381e-001) - 3.91293969470539e+001*max(0; X3-6.03835653037881e-001)

Source: author’s calculations (computation by STATISTICA 9.1)

Regression equation - MARSSplines

Source: author’s construction (computation by STATISTICA 9.1)

Graph of observed and predicted values - MARSSplines


ISSN 1691-3078

230

Bibliography

,

231


ISSN 1691-3078

1 E-mail address

Application of Immovable Property Tax in The EU Baltic Sea Region Countries

Sandra Stucere1 Gunita Mazure

Abstract.

Key words:JEL code:

Introduction

scientists have researched individual aspects related to

The research is based on the hypothesis that

aim is set to verify the

tasks are advanced to achieve the set

1)

2)

3)



ISSN 1691-3078

232

particularly these countries are profoundly studied in the

Analysis of tax burden and structure in the EU Baltic Sea Region countries

233


ISSN 1691-3078

This is evidenced by the GDP per capita indicator

Table 1

Country 2001 2002 2003 2005 2006 2007 2009 2010

Difference in percentage points

2010/2001

2010/

0

Estonia

Poland

Finland

Source: authors’ summary and calculations based on Taxation Trends …, 2010 and Government Finance …, 2011

13.9 1816.8

11.1 11.3 11.8 13.6 13.3

11

30.1

6.87.4 4.7

6.9

15.9

19.3

1.9

13.3

11.116.9

8.6 10.7

12.7

8.8

14.315.6

14.714.4

29.9

26.1

3027.9

0

10

20

30

40

50

60

Denmark Germany Estonia Latvia Lithuania Poland Finland Sweden

% o

f GD

P

Indirect taxes Direct taxes Social contributions Shadow economy

Source: authors’ construction based on Government Finance …, 2011

Tax burden, tax structure and the share of shadow economy in the


ISSN 1691-3078

234

standard – larger GDP per capita and higher average

th position according to the

th position (in

the 6th

th

th position according to the

sible to hide

Jens

analyses

in his paper

Immovable property tax in the EU Baltic Sea Region countries

The European Union has not set a single procedure for

essential so

There are different types for setting and application of

235


ISSN 1691-3078

Table 2

Application of immovable property tax in the EU Baltic Sea Region countries

Country Tax base Taxable object applied by a local government

Price for sqm

Engineering

constructions

Natural agricultural land

Residential buildings

3

-

-

-

-

-

-

-

-

-

-

Engineering

constructions

-

-

-

-

-

-

Estonia - -


Engineering

constructions

-

-

-

-

-

-

-

-

-

-

Finland


Engineering

constructions

-

-

-

-

-

-

-

Poland


-

-

-

-

-

-

Source: authors’ construction based on Taxes in Europe, 2011

Table 3

Amount of immovable property tax and its share in total tax revenues in the Baltic Sea Region countries for the period of 2005-2009

Country 2005 2006 2007 2009Difference

2009/2005

10 250 10 400 10 710

Estonia 506 517 552 755 755

Poland 11 614 12 622 14 700

Finland 725

Source: authors’ construction based on Taxes in Europe, 2011


ISSN 1691-3078

236

standard procedures for calculation of the value of an

depending on the legislation of a certain country and

for the part of the property cadastral value that ranges

not be paid 10 calendar years after the construction

paid only one year after construction or reconstruction

revenues of the state consolidated budget reveal the

237


ISSN 1691-3078

Table 3 provides the possibility to analyse the


Bibliography


ISSN 1691-3078

I. Vitola, D. Joma Immovable Property Tax in Latvia: Problematic Aspects and Possibilities for Improvement

1 E-mail address:

Immovable Property Tax in Latvia: Problematic Aspects and Possibilities for Improvement

Irija Vitola1 Dr.oec Daiga Joma Dr.philol.

Abstract.


Introduction

the sustainability of enterprises and the sustainable

Research aim and tasks

1) to identify and analyse the purpose and tasks of

2)

Research methodology



ISSN 1691-3078

An analysis on the role and position of IPT in the

Insight into the history of immovable property tax

1)

2)

3)

rate


Table 1

Immovable property tax rates in 1990

Value of taxable immovable property, LVL

Immovable property tax rate, LVL

1500-25000

25000-50000

50000-250000

250000-750000

750000-2500000

Source: Vitola I., Boruks A., 2006


ISSN 1691-3078

240


have to be paid on buildings and constructions until

stipulating that:

1) the cadastral value of buildings and constructions

2)

that:

1)

2)

3)

calculated based on the previous cadastral value of

1)

2)

Taxable items

The procedure for calculating the share of cadastral

241


ISSN 1691-3078

Taxable value and tax calculation

Tax rates


repressed persons regarding land and buildings included

Table 2

Immovable property tax rates in Latvia since 1 January 2010

Tax rate Taxable items

1)

2)

3)

4)

1)

2)

Source: authors’ construction based on Ivanova O., 2010; Law on Immovable Property Tax, 1997


ISSN 1691-3078

242


de minimis

de minimis aid regarding

for 5 years and forestland – for 25 years but the IPT

is differentiated according to the purpose of use of

and social effects and reducing the differentiation of

Conclusions and recommendationsConclusions

taking into consideration interests of both the entire

of cadastral evaluation based on the cadastral

243


ISSN 1691-3078

Recommendations

The IPT rates have to be set progressively according

property and the industry has to be introduced to set

effects and reducing the differentiation of individuals

The IPT has to be revised every 5 years after its

Bibliography

neder (One Suit does not Fit Everyone) Latvijas

Vestnesis. Plus.

cilveku dzivi (Property Tax Threatens Human Life)

(Amendments to the Law on Immovable Property

Tax)


Tax)


Tax)


Tax)

(Immovable Property – News of

2010) Gramatvediba un ekonomika.

Latvijas Statistikas Gadagramata (Statistical

Yearbook)


Yearbook)


Yearbook)


Yearbook)

Likuma “Par nekustama ipasuma nodokli” normu

piemerosanas kartiba

Kadastralas vertesanas noteikumi (Regulations

Regarding Cadastral Assessment)

Nodoklu politika

Eiropas Savienibas vide (Tax Policy in the European

Nekustama ipasuma nodokla likmes ES

(

Nekustama ipasuma valsts kadastra likums

(Immovable Property State Cadastre Law):



ISSN 1691-3078

244

Par ipasuma nodokli (Law on Property Tax):

Par nekustama ipasuma nodokli (Law on

Immovable Property Tax)

Tautsaimniecibas attistibas

problemas Latvija (Development Problems

of National Economy in Latvia).

Nodoklu politikas tiesiskie un ekonomiskie aspekti

(Legal and Economic Aspects of Tax Policy and

their Effect on the Business Environment in

Latvia).

Economics Science for Rural



245


ISSN 1691-3078


ISSN 1691-3078

246

Editor – in-chief

ECONOMIC SCIENCE FOR RURAL DEVELOPMENT ... - LLUFB

Documents

Transcript of ECONOMIC SCIENCE FOR RURAL DEVELOPMENT ... - LLUFB