The influence of the industrial policy of Latvia on the country’s economy

Abstract

The goal of this article is to show the role of the production sector in the economy of Latvia. The authors carried out the comparative analysis of the implementation of the production policy in the Baltic States. The methodology assumes the system approach to problem solving, providing unity of the following qualitative and quantitative methods: Monographic document analysis method (makes it possible to carry out a detailed study based on the extensive scientific literature review and law); Statistical research method. The authors of the article also used the cross correlation analysis (correlation analysis, regression analysis) to study the concept of production policy, its objectives and types, as well as pay special attention to the transformation of the definition of ―the production policy‖ in the modern economy. A comparative analysis of implementation of the Europe 2020 program in the Baltic States and its main indicators was also carried out. The implementation of the production policy was examined: export – import operations in the industry and the level of salaries. Using econometric methods (correlation of Spearman, Pearson and tau Kendall) the authors have shown the relationship between the investments in research and development, the level of salaries and export – import operations in the production sector.