Emphasizing sustainable economic development preconditions in Lithuania and in order to research the formation of regional policy, the article was made on Lithuania financial crisis impact on the economy, comparative study. It was found that in the literature lacks of general method to compare the different financial crises that have occurred in different regions, countries or at different intervals impact to economic indicators, so was created financial crisis impact on countries economy index, to compare this diferent impact. The study identified three financial crisis which negatively affected Lithuanian economy – “Lithunia banking crisis” (1995), “Russian financial crisis” (1998) and “Global Financial Crisis” (2008). Based on this new index calculations, the financial crisis affect was compared and found that the greatest negative impact on the economy caused the Global financial crisis (2008). Examining the specifics of Lithuania’s economy noted that all of the financial crisis affected the gross domestic product growth, labor market and the country budget balance. Meanwhile, the impact on other macroeconomic indicators of the crisis depended on the crises specifics and was different.
Intensive international activity of banks caused by fairly recently lifted financial restrictions in many countries has been a subject of great scientific interest ever since. The article describes various short-term consequences of foreign bank penetration in the financial markets of some of the regions of the world. The authors pay specific attention to the reasons and modes of foreign bank entry in emerging market and transition market economies as well as to the differences in the impact of such entry on the stability and efficiency of financial systems and economies of the countries of Asia, Latin America, Central and Eastern Europe and Russia. Research methods: systemic, comparative and logical analysis.
Financial disturbances can be costly. In particular, systemic events in financial markets, such as banking crises, often affect the whole society in a deeply traumatising way. Consequently, it is important to anticipate risks of such adverse development so as to try to prevent that kind of disaster and ensure financial stability. Author of this paper analyses fragility of financial system of Latvia to the fluctuations in global economy and changes in direction of international capital flows by creating complex financial system stability index. Results have proven that dynamics of every developed sub-index show unique economic processes defining Latvian financial system’s stability. Secondly, sub-indices analysis allows to determine that Latvian financial vulnerability began to worsen in 2005, however, Latvian financial stability downward movement started in 2002, that in its turn shows the necessity for Latvian economic policy makers to get more actively involved in preventing growing risks of economy. Latvian financial system stability index established in this working paper and its accompanying methodology can be further used in follow-up research and Latvian financial stability index improvement.
We are participants of ever changing peripherization. A growing external control over social sciences has been spotted lately in academic community. This inspires to investigate a Lithuanian case on the discourse of regional governance in order to understand the impact of social research methodology in the processes of peripherization. With the intention to deemphasize domination, the article describes eleven stories designed for constituting methodological meanings of regional governance (RG) arrived at while reflecting upon public, academic and legal written texts. Texts were chosen to illustrate variety of international and national discourses, which manage the chain of reasoning on RG. The article ends with some insights on understanding RG and its methodological roots associated with three sets of principles drawn from qualitative research, quantitative research and discourse research.
Development of agriculture is a substantial element of a balanced development of a country, comprising the development of agricultural, forestry and fishery sectors as well as the aggregate of other economic, social, and ecological activities related to the rural environment. The two main types of state aid provided to agriculture and rural development include direct and indirect support. The state aid shall be fully consistent with the basic guidelines of the European Community regarding the support for agriculture. The aim of the research is to discuss the legal regulation in the sphere of state aid allocation and to analyse the dynamics and impact of allocated national subsidies for the development of agriculture and rural development. Currently, the requirements for allocation state aid in the form of subsidies undergo fundamental amendments within the framework of simplification of regulatory enactments of the EU CAP. The amendments relate to both the content and procedures of the requirements. The goal is to speed up the conformation and approval of state aid payments and to simplify the requirements for allocation of subsidies. It is envisaged that the amendments would not affect the targets of subsidies but they would provide more earmarked state support.
The article presents the main ideas of sustainable tourism – new form of tourism promoted by authorities, environmental and social institutions and international organizations. It implies taking into account economic, environmental, and socio-cultural aspect by planning and management of tourism. The article presents historical background of the idea of sustainability and main international events concerning this topic. The author highlights negative effects of tourism that can be prevented by applying the principles of sustainable development.
Today, in knowledge and information technology era, the world’s businesses, both large and small, are increasingly seeking to use information technologies – especially information systems. There are implemented and maintained several of information systems: resource view based, customer orientated, document exchange information systems and universal ones, as opposed to specialized, and contains a lot more functionality offer. Information systems are implemented to ensure the core business functionality by automating certain processes, providing benefits such as business process transparency, arrangement and actualization. By the use of information systems certain services became popular, which are related with the established information system maintenance – the ongoing process of auditing, risk identification and management, and compliance regulations, laws, standards and guidelines. Such compliance is essential for the better functioning of information systems and aligns its activities. This article explores a theory of IT outsourcing and IT Compliance definition to give an idea of the need for it, and point to the benefits organizations can in carrying out these processes – system dynamics modeling research method was used in following research.
The system of local governments financing, which is used in Estonia is based on personal income tax and supports paid by the state. A system of that kind creates enormous inequality between the local governments. The continuing decrease of income taxes and the increase of tax-free minimum arises the role of state supports. Central government reduced essentially the part of income taxes assigned for local governments and supports in 2007–2010. That’s why the municipalities met a difficult economic situation. The greatest costs for municipalities is education. Government has taken a course to abolishing rural schools. As the analyses demonstrate the schools are enormous source of incomes for municipalities. Therefore the abolishment of schools would made the financial situation of municipalities worse even more. A special method wasn’t created for the analysis. The classical economic means – tables, indexes and marginal analyses were used.
The main purpose of this article is twofold. The first objective is to follow the main trends in the development in the Latvian’s monetary policy and the European Monetary system accession process, with a focus on the local currency stability problems. It discusses the process and strategies for choice of the strategy as well as the main issues that have arisen in the accession process. The second objective of this article is to investigate the on-going monetary policy of the Bank of Latvia, to analyse the basic principles of its operations and influence on national economic growth. Both objectives fully corresponding to the article’s research object, i.e. to a monetary policy of the Bank of Latvia. Regarding the developed countries the general monetary policy objectives deals not only with maintenance of stability of the exchange rate and general price level, but also with stimulation of economic development, growth of employment and incomes of the citizens. The period from 2003 till 2010 is being investigated. We use a wide range of research methods, such as: grouping method, method of comparison of financial ratios and etc.
Globalization process has a gradually stronger influence on economic development. In this new reality the main indicator is innovation. Various regions of European Union formulate Regional Innovation Strategies (RIS). The goal of this document is to formulate essential elements of regional development strategy. This kind of strategy was created for the Mazovia region. In the document we can read that Mazovia is the most innovative region in Poland, however, it is still far behind regions in highly developed countries. The main strength of Mazovia is the fact that it is a capital region, which means a better access for enterprises to information, important contacts and promotion. Nevertheless, we still can experience many barriers, undermining regular regional development, such as insufficient grants for scientific research or inadequate engagement of public administration to help entrepreneurs.