scholarly journals Economic crisis in the Baltic states : Focusing on Latvia

2010 ◽  
Vol 55 (186) ◽  
pp. 89-114 ◽  
Author(s):  
Yoji Koyama
Keyword(s):  
Economic Crisis ◽  
Foreign Currency ◽  
Baltic States ◽  
Eu Member States ◽  
Market Shares ◽  
The Government ◽  
Set Up ◽  
Maastricht Criteria ◽  
The Baltic ◽  
The Uk

This paper examines the causes of the economic crisis in new EU member states in Central and Eastern Europe, focusing on the Baltic States, especially Latvia. Thanks to the Single Market of the EU, workers in this country became able to migrate to advanced EU countries, especially the UK, decreasing the unemployment rate and at the same time causing a sharp increase in wages due to a tightened labour market. Banks from Nordic countries came to operate in Latvia and competed for market shares, stirring a consumption boom. In a situation in which people can easily get loans denominated in a foreign currency the monetary policies of the central bank are weakened. The Latvian economy already showed signs of overheating in 2005. However in the spring of 2007 the government turned to restrictive policies, causing a depression at the end of 2007. The Lehman shock dealt the Latvian economy its final blow. Latvia set up the introduction of the Euro in 2013 as an exit strategy. Latvia is in a dilemma: if the country does not devalue its national currency and tries to satisfy the Maastricht criteria soon, it will be obliged to adopt pro-cyclical policies, causing economic stagnation.

Belarus unrest puts IT sector at risk

2020 ◽  
Keyword(s):  
At Risk ◽  
Service Sector ◽  
Foreign Currency ◽  
It Outsourcing ◽  
Civic Action ◽  
Baltic States ◽  
Content Type ◽  
Operational Risks ◽  
The Government ◽  
The Baltic

Significance The IT sector has been an unmitigated success in recent years and formerly coexisted with the government, but internet shutdowns raised operational risks, and the industry's staff have become progressively involved in civic action. Impacts IT outsourcing is an important source of foreign currency revenues, which may now decline. Neighbouring Ukraine, Poland and the Baltic states are set to benefit if IT companies move out of Belarus. The Belarusian service sector would suffer from a mass exodus of skilled and well-paid IT workers.

scholarly journals BALTIC ETHNOCRACIES BETWEEN RUSSIA AND THE EU: IN SEARCH OF CONSENSUS UNDER CONDITIONS OF THE ECONOMIC CRISIS

2013 ◽  
pp. 25-33
Author(s):  
V. V. Vorotnikov
Keyword(s):  
Economic Crisis ◽  
Public Support ◽  
Financial Economic ◽  
Political Crisis ◽  
Baltic States ◽  
Political Issues ◽  
Language Minorities ◽  
Social Unity ◽  
The Baltic ◽  
The Eu

The economic crisis fueled contradictions among the parties and weakened public support of internal and external policies of the Baltic states (Lithuania, Latvia, Estonia). Natural necessity to abandon previous one-sided Euro-Atlantic foreign political and foreign economic orientation in favor of more balanced approach towards relations with Eastern neighbours (primarily with Russia) has become the issue of key importance that turned out to be a stumbling block for main political parties (ruling parties, opposition, so called ‚Russian‘ parties) in the Baltic states. The attitude to this problem became crucial during recent political crisis in Latvia, whereas in Lithuania and Estonia it led to changing rhetoric on foreign political issues by opposition parties. It is possible to nominally define the political situation in Lithuania as partisan consensus, whereas in Latvia and Estonia foreign political strategies complicated by unresolved domestic ethnic and language minorities problems are a battlegroud for ruling right-wing conservative coalitions and social-democratic oppositions. So, main social and political forces in the Baltic states faced the task to find a new consensus on foreign political issues in order to efficiently develop national economies under the conditions of financial economic turbulence in the EU and worldwide as well as to support social unity.

scholarly journals THE ROLE OF THE FOREIGN BANKS IN THE 5 EU MEMBER STATES / UŽSIENIO BANKŲ VAIDMENS 5 EUROPOS SĄJUNGOS VALSTYBĖSE TYRIMAS

2012 ◽  
Vol 13 (1) ◽  
pp. 189-206 ◽  
Author(s):  
Mejra Festić
Keyword(s):  
Capital Adequacy ◽  
Foreign Banks ◽  
Risk Exposure ◽  
Baltic States ◽  
Eu Member States ◽  
Recent Financial Crisis ◽  
Domestic Banks ◽  
The Baltic ◽  
Derivative Products

The article tests if foreign banks have lowered their market share in the Baltic States, Romania and Bulgaria during the recent financial crisis after 2007, due to the perception of risk exposure in local markets. It has been proved that, the credit supply by foreign banks in the Baltic States, Romania and Bulgaria has remained relatively stable during the latest crisis by TSLS method. Foreign ownership generally utilizes derivative products more than domestic banks in the NMSs because they have more expertise in hedging and can diversify risks effectively with their larger parent banks in their home country. The reaction of foreign banks abroad depends on the capital adequacy of the parent bank and the business opportunities in the host economies. Santrauka Straipsnyje analizuojamas užsienio bankų vaidmuo penkiose Europos Sąjungai priklausančiose valstybėse – Baltijos šalyse, Rumunijoje ir Bulgarijoje. Autorius tyrimui pasirinko užsienio bankų užimamos rinkos dalies vertinimą ir ekonomikos krizės poveikio nustatymą šių bankų veiklos rodikliams bei rinkos daliai. Gauti rezultatai parodė, kad kreditų pasiūla, teikiama užsienio bankų Baltijos šalyse, Rumunijoje ir Bulgarijoje, išliko palyginti stabili. Tai galima susieti su tuo, kad užsienio bankai taiko ir naudoja išvestinius produktus, motyvuodami tuo, jog turi daugiau patirties ir gali diversifikuoti riziką, efektyviai naudodami juos remiančių savos šalies („motininių“) bankų finansinius išteklius. Tyrimas taip pat parodė, kad užsienio bankų reakcija į rinkos pasikeitimus vienoje ar kitoje valstybėje tiesiogiai priklauso nuo „motininio“ banko kapitalo pakankamumo ir ekonominių verslo sąlygų toje šalyje.

scholarly journals THE OVERHEATING OF FIVE EU NEW MEMBER STATES AND CYCLICALITY OF SYSTEMIC RISK IN THE BANKING SECTOR

2009 ◽  
Vol 10 (3) ◽  
pp. 219-232 ◽  
Author(s):  
Mejra Festić ◽  
Sebastijan Repina ◽  
Alenka Kavkler
Keyword(s):  
Economic Activity ◽  
Banking Sector ◽  
Foreign Currency ◽  
Baltic States ◽  
Economic Activities ◽  
Loan Portfolio ◽  
Tradable Sector ◽  
The Baltic ◽  
Productivity Gains

Rapid credit growth has been one of the most pervasive developments in recent years in Central and Eastern Europe. We tested for the significance of macroeconomic and banking sector variables that condition non‐performing loan ratios and the hypothesis of procyclicality between economic activity and improving banking‐sector results in the Baltic States, Bulgaria and Romania. The theory of procyclicality between economic activity and the non‐performing loan ratio was proven. The increased economic activity improved the loan portfolio quality of the banking sector, as indicated by a lower NPL ratio. Due to a high share of loans denominated in a foreign currency and the fact of productivity gains in the tradable sector, the appreciation of the real exchange rate contributed to an improvement in loan portfolio quality. The procyclicality of banking sector performance and high economic activities growth could be a signal of an economy overheating and therefore a slowdown in economic activity is likely to accelerate the growth of the non‐performing loan ratio in the Baltic States, Bulgaria and Romania.

scholarly journals The Role of Government in Restoring International Competitiveness: the Case of Crisis Management in the Baltic States Economies versus Poland Economies

2014 ◽  
Vol 1 (1) ◽  
pp. 11
Author(s):  
Anna Matysek-Jędrych
Keyword(s):  
International Competitiveness ◽  
Negative Influence ◽  
Economic Downturn ◽  
The European Union ◽  
Baltic States ◽  
Global Crisis ◽  
Role Of Government ◽  
Global Competitiveness ◽  
The Government ◽  
The Baltic

This paper focuses on the relationship between the government actions, global economic crisis, and competitiveness on a national and regional dimension. The Baltic States (i.e., Estonia, Latvia, and Lithuania) have experienced one of the biggest Gross Domestic Product (GDP) contractions during the Global Crisis so far. Meanwhile, Poland was the only country with a positive GDP growth in the European Union during the Global Crisis. Hence, identifying and assessing changes in the relative competitiveness, as a consequence of the economic downturn in both Baltic States and Poland, has sparked many interests.The main channel through which the crisis undermined competitiveness has been the macroeconomic situation. That is why employing single macroeconomic variables as proxies of competitiveness suggests a much stronger influence of the crisis on competitiveness in comparison to overall measures (e.g. Global Competitiveness Index). It may be generally concluded that a short-term crisis, even if severe, does not have a negative influence on international competitiveness as long as a proper anti-crisis policy is implemented and the country is small enough to react fast and adapt to new conditions in the global environment.

scholarly journals Lithuania’s search for International support to Resist Russian Aggression in 1918

2000 ◽  
Vol 5 (1) ◽  
pp. 161-175
Author(s):  
Gediminas Rudis
Keyword(s):  
The State ◽  
Baltic States ◽  
International Support ◽  
Internal Resources ◽  
State Research ◽  
The Republic ◽  
The Government ◽  
Military Support ◽  
The Baltic

The paper rejects a viewpoint prevalent among Lithuanian historians that the first government of the Republic of Lithuania, led by Augustinas Voldemaras, did not recognize the danger of Russia and was not concerned with the security of the state. Research shows that the government was fully conscious of the international situation of Lithuania and expected efficient diplomatic and military support from the Allies to counter Russian aggression. The orientation to the Allied powers was well-grounded, but too little attention was paid to the mobilization of the internal resources for the defence of the country. That was probably the most crucial drawback of the activity of Voldemaras’ government. Such a conclusion can reasonably be drawn if one takes into account the fact that at that time the Allied powers had not yet defined their policy with respect to the Baltic states.

scholarly journals An academic foundation programme in trauma and orthopaedic surgery

2009 ◽  
Vol 91 (3) ◽  
pp. 92-94
Author(s):  
CM Smith ◽  
L Cooper ◽  
T Dutton ◽  
ML Costa
Keyword(s):  
Clinical Research ◽  
Research Collaboration ◽  
Academic Staff ◽  
White Paper ◽  
Academic Training ◽  
Foundation Programme ◽  
The Government ◽  
Set Up ◽  
The Uk ◽  
Job Content

There have been substantial recent changes to the structure of clinical academic training. In its 2004 white paper, Science and innovation: working towards a ten-year investment framework, the government issued a call for improvements in clinical research in the NHS, to ensure that scientific advances would translate to genuine improvements in patients' care. In response to this, the UK Clinical Research Collaboration was set up to enhance the partnership between government, industry and medical sectors. They identified three current major problems in clinical academic training: lack of a clear entry route and career structure; lack of flexibility in job content and location; and a shortage of suitably structured posts on training completion. In 2004, 10% of academic posts were unfilled and there were 23% fewer junior academic staff than three years previously.

scholarly journals Understanding ‘The Essential Fact about Capitalism’: Markets, Competition and Creative Destruction

2001 ◽  
Vol 175 ◽  
pp. 67-84 ◽  
Author(s):  
Wendy Carlin ◽  
Jonathan Haskel ◽  
Paul Seabright
Keyword(s):  
Low Income ◽  
Productivity Growth ◽  
Selection Process ◽  
Low Income Countries ◽  
Poor Countries ◽  
Market Shares ◽  
Improved Performance ◽  
The Business Cycle ◽  
The Baltic ◽  
The Uk

This paper examines two ways in which competition works in modern capitalist economies to improve productivity. The first is through incentives: encouraging improvements in technology, organisation and effort on the part of existing establishments and firms. The second is through selection: replacing less-productive with more productive establishments and firms, whether smoothly via the transfer of market shares from less to more productive firms, or roughly through the exit of some firms and the entry of others. We report evidence from the UK suggesting that selection is responsible for a large proportion of aggregate productivity growth in manufacturing, and that much of this is due in turn to selection between plants belonging to multi-plant firms. We also investigate whether the nature of the selection process varies across the business cycle and report evidence suggesting that it is less effective in booms and recessions. Finally, although in principle productivity catch-up by low-income countries ought to be easier than innovation at the frontier, in the absence of a well functioning competitive infrastructure (a predicament that characterises many poor countries), selection may be associated with much more turbulence and a lower rate of productivity growth than in relatively prosperous societies. We report results of a survey of firms in transition economies suggesting that, particularly in the former Soviet states (excluding the Baltic states), poor output and productivity performance has not been due to an unwillingness on the part of firms to change and adapt. On the contrary, there has been a great deal of restructuring, much new entry and large reallocations of output between firms; but such activity has been much more weakly associated with improved performance than we would expect in established market economies.

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