THE ROLE OF ECONOMIC ACTIVITIES’ CLUSTERS IN GROSS VALUE ADDED GENERATION IN THE BALTIC STATES

Rima Rubčinskaitė, Gindrutė Kasnauskienė

Abstract


: Economic globalization affects regional development through different economic value creation chains.  The structure of regional economic activities’ groups and size of clusters could also influence the structure and size of gross value added in a particular region. This paper examines the impact of the main labor force indicators on the generated gross value added in diverse economic activities in the Baltic States and the neighbor regions of Finland and Poland in the period of 2000-2013 according to Eurostat data. The research has shown that the structure of economic activities clusters in the Baltic States (Estonia, Latvia, Lithuania) significantly differs from the neighboring regions of Poland and Finland. We also found that the labour force input has a significant impact on the following economic activities’ clusters in the Baltic States: “Industry (except construction)”, “Wholesale and retail trade, transport, accommodation and food service activities”, “Construction”, “Professional, scientific and technical activities; administrative and support service activities”, “Financial and insurance activities”, “Arts, entertainment and recreation; other service activities; activities of household and extra-territorial organisations and bodies”. The impact of the labor force on generated gross value added differs in diverse economic activities. The authors believe that the results of this study could be useful for policy makers in building more progressive national and regional economic development strategies.

Keywords


economic clusters, labor force, gross value added, regional development, Baltic States

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References


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DOI: http://dx.doi.org/10.12955/cbup.v5.957

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