The smart specialization concept was implemented in the EU in 2014, stating that regions have to specify specialization areas for development of innovations. Economic specialization reveals a comparative advantage in that field. However, there are different arguments linking specialization to economic development. This study analyzes these arguments and aims to investigate the impact of economic specialization on regional economic development and to give insights into identifying prospective areas in regional economies. A panel fixed effect estimation of industry-level regional data suggests that economic specialization in broader regional employment, called relative specialization, is ambiguously associated with economic development. Our findings suggest that neither economic specialization nor economic diversity are a clear-cut solution for ensuring economic growth. Economic structure in EU regions differs, and there is no one answer for which approach is better for economic development. Specialization measures, particularly the location quotient, cannot fully capture the dynamics in the industry structure that could be essential for formation of regional development strategy
The smart specialization concept was implemented in the EU in 2014, stating that regions have to specify specialization areas for development of innovations. Economic specialization reveals a comparative advantage in that field. However, there are different arguments linking specialization to economic development. This study analyzes these arguments and aims to investigate the impact of economic specialization on regional economic development and to give insights into identifying prospective areas in regional economies. A panel fixed effect estimation of industry-level regional data suggests that economic specialization in broader regional employment, called relative specialization, is ambiguously associated with economic development. Our findings suggest that neither economic specialization nor economic diversity are a clear-cut solution for ensuring economic growth. Economic structure in EU regions differs, and there is no one answer for which approach is better for economic development. Specialization measures, particularly the location quotient, cannot fully capture the dynamics in the industry structure that could be essential for formation of regional development strategy
The smart specialization concept was implemented in the EU in 2014, stating that regions have to specify specialization areas for development of innovations. Economic specialization reveals a comparative advantage in that field. However, there are different arguments linking specialization to economic development. This study analyzes these arguments and aims to investigate the impact of economic specialization on regional economic development and to give insights into identifying prospective areas in regional economies. A panel fixed effect estimation of industry-level regional data suggests that economic specialization in broader regional employment, called relative specialization, is ambiguously associated with economic development. Our findings suggest that neither economic specialization nor economic diversity are a clear-cut solution for ensuring economic growth. Economic structure in EU regions differs, and there is no one answer for which approach is better for economic development. Specialization measures, particularly the location quotient, cannot fully capture the dynamics in the industry structure that could be essential for formation of regional development strategy
The smart specialization concept was implemented in the EU in 2014, stating that regions have to specify specialization areas for development of innovations. Economic specialization reveals a comparative advantage in that field. However, there are different arguments linking specialization to economic development. This study analyzes these arguments and aims to investigate the impact of economic specialization on regional economic development and to give insights into identifying prospective areas in regional economies. A panel fixed effect estimation of industry-level regional data suggests that economic specialization in broader regional employment, called relative specialization, is ambiguously associated with economic development. Our findings suggest that neither economic specialization nor economic diversity are a clear-cut solution for ensuring economic growth. Economic structure in EU regions differs, and there is no one answer for which approach is better for economic development. Specialization measures, particularly the location quotient, cannot fully capture the dynamics in the industry structure that could be essential for formation of regional development strategy
The smart specialization concept was implemented in the EU in 2014, stating that regions have to specify specialization areas for development of innovations. Economic specialization reveals a comparative advantage in that field. However, there are different arguments linking specialization to economic development. This study analyzes these arguments and aims to investigate the impact of economic specialization on regional economic development and to give insights into identifying prospective areas in regional economies. A panel fixed effect estimation of industry-level regional data suggests that economic specialization in broader regional employment, called relative specialization, is ambiguously associated with economic development. Our findings suggest that neither economic specialization nor economic diversity are a clear-cut solution for ensuring economic growth. Economic structure in EU regions differs, and there is no one answer for which approach is better for economic development. Specialization measures, particularly the location quotient, cannot fully capture the dynamics in the industry structure that could be essential for formation of regional development strategy.
The role of agriculture sector is understood as being vital for economic development and well being of rural areas. Common agriculture policies in the EU and production shocks in agriculture sector reflect in production changes that causes direct and indirect effects for other industries development in the region, as well as, households' income. This paper aimed to evaluate agriculture sector's direct and indirect impacts for the economy by analyzing sectoral linkages and multiplier effects. Input-output analysis techniques were applied. Both output and income multipliers were evaluated. This paper supports the idea that agriculture sectors were more multiplying the economy than other sectors on average. This sector remains important catalyst of the economy, especially while taking into account development challenges in rural areas.
The role of agriculture sector is understood as being vital for economic development and well being of rural areas. Common agriculture policies in the EU and production shocks in agriculture sector reflect in production changes that causes direct and indirect effects for other industries development in the region, as well as, households' income. This paper aimed to evaluate agriculture sector's direct and indirect impacts for the economy by analyzing sectoral linkages and multiplier effects. Input-output analysis techniques were applied. Both output and income multipliers were evaluated. This paper supports the idea that agriculture sectors were more multiplying the economy than other sectors on average. This sector remains important catalyst of the economy, especially while taking into account development challenges in rural areas.
The role of agriculture sector is understood as being vital for economic development and well being of rural areas. Common agriculture policies in the EU and production shocks in agriculture sector reflect in production changes that causes direct and indirect effects for other industries development in the region, as well as, households' income. This paper aimed to evaluate agriculture sector's direct and indirect impacts for the economy by analyzing sectoral linkages and multiplier effects. Input-output analysis techniques were applied. Both output and income multipliers were evaluated. This paper supports the idea that agriculture sectors were more multiplying the economy than other sectors on average. This sector remains important catalyst of the economy, especially while taking into account development challenges in rural areas.
The role of agriculture sector is understood as being vital for economic development and well being of rural areas. Common agriculture policies in the EU and production shocks in agriculture sector reflect in production changes that causes direct and indirect effects for other industries development in the region, as well as, households' income. This paper aimed to evaluate agriculture sector's direct and indirect impacts for the economy by analyzing sectoral linkages and multiplier effects. Input-output analysis techniques were applied. Both output and income multipliers were evaluated. This paper supports the idea that agriculture sectors were more multiplying the economy than other sectors on average. This sector remains important catalyst of the economy, especially while taking into account development challenges in rural areas.
The government budget is an important part of state affairs. It ensures the redistribution of income, welfare, economic development and stabilisation. Various types of budgetary principle are described in the literature. These principles aim to improve formation processes for budgets, making them easier to implement, clearer and more effective. There has been no complex assessment of budget-forming principles in Lithuania, only fragmented one in audit institutions and several studies. The purpose of this article is to analyse principles of budget formation and their implementation in practice, in line with legal and economic aspects. Three tasks were set for achieving this aim: to evaluate the budget-formation principles and their specific features; to assess the fulfilment of government budgetary principles in Lithuania, using legal documents and other sources; and to analyse the balance of the country's government budget. The study applies theoretical and empirical research methods, and scientific literature and legal documents are examined to carry out a theoretical analysis of the government budget and the principles of its formation. Research was conducted using data grouping, graphical data analysis and other descriptive statistics. Theoretical analysis revealed that the majority of budgetary principles were successfully implemented and defined in law. The principles of transparency, annuality and unit of account were accomplished fully, compared with principles of fullness, economy, reality and unity that were not fully accomplished. The principle of equilibrium was not accomplished at all. Analysis revealed that in the years 2004-2014, Lithuania had a budget deficit. The government's budgetary income and expenditure had a tendency to increase unevenly. On average, income rose a little more than expenditure, but still made up less of the budgetary balance than expenditure. Aside from this, Lithuania did not follow the Maastricht criteria for several years and the government deficit-to-GDP ratio exceeded 3 per cent.
The government budget is an important part of state affairs. It ensures the redistribution of income, welfare, economic development and stabilisation. Various types of budgetary principle are described in the literature. These principles aim to improve formation processes for budgets, making them easier to implement, clearer and more effective. There has been no complex assessment of budget-forming principles in Lithuania, only fragmented one in audit institutions and several studies. The purpose of this article is to analyse principles of budget formation and their implementation in practice, in line with legal and economic aspects. Three tasks were set for achieving this aim: to evaluate the budget-formation principles and their specific features; to assess the fulfilment of government budgetary principles in Lithuania, using legal documents and other sources; and to analyse the balance of the country's government budget. The study applies theoretical and empirical research methods, and scientific literature and legal documents are examined to carry out a theoretical analysis of the government budget and the principles of its formation. Research was conducted using data grouping, graphical data analysis and other descriptive statistics. Theoretical analysis revealed that the majority of budgetary principles were successfully implemented and defined in law. The principles of transparency, annuality and unit of account were accomplished fully, compared with principles of fullness, economy, reality and unity that were not fully accomplished. The principle of equilibrium was not accomplished at all. Analysis revealed that in the years 2004-2014, Lithuania had a budget deficit. The government's budgetary income and expenditure had a tendency to increase unevenly. On average, income rose a little more than expenditure, but still made up less of the budgetary balance than expenditure. Aside from this, Lithuania did not follow the Maastricht criteria for several years and the government deficit-to-GDP ratio exceeded 3 per cent.
The government budget is an important part of state affairs. It ensures the redistribution of income, welfare, economic development and stabilisation. Various types of budgetary principle are described in the literature. These principles aim to improve formation processes for budgets, making them easier to implement, clearer and more effective. There has been no complex assessment of budget-forming principles in Lithuania, only fragmented one in audit institutions and several studies. The purpose of this article is to analyse principles of budget formation and their implementation in practice, in line with legal and economic aspects. Three tasks were set for achieving this aim: to evaluate the budget-formation principles and their specific features; to assess the fulfilment of government budgetary principles in Lithuania, using legal documents and other sources; and to analyse the balance of the country's government budget. The study applies theoretical and empirical research methods, and scientific literature and legal documents are examined to carry out a theoretical analysis of the government budget and the principles of its formation. Research was conducted using data grouping, graphical data analysis and other descriptive statistics. Theoretical analysis revealed that the majority of budgetary principles were successfully implemented and defined in law. The principles of transparency, annuality and unit of account were accomplished fully, compared with principles of fullness, economy, reality and unity that were not fully accomplished. The principle of equilibrium was not accomplished at all. Analysis revealed that in the years 2004-2014, Lithuania had a budget deficit. The government's budgetary income and expenditure had a tendency to increase unevenly. On average, income rose a little more than expenditure, but still made up less of the budgetary balance than expenditure. Aside from this, Lithuania did not follow the Maastricht criteria for several years and the government deficit-to-GDP ratio exceeded 3 per cent.
The government budget is an important part of state affairs. It ensures the redistribution of income, welfare, economic development and stabilisation. Various types of budgetary principle are described in the literature. These principles aim to improve formation processes for budgets, making them easier to implement, clearer and more effective. There has been no complex assessment of budget-forming principles in Lithuania, only fragmented one in audit institutions and several studies. The purpose of this article is to analyse principles of budget formation and their implementation in practice, in line with legal and economic aspects. Three tasks were set for achieving this aim: to evaluate the budget-formation principles and their specific features; to assess the fulfilment of government budgetary principles in Lithuania, using legal documents and other sources; and to analyse the balance of the country's government budget. The study applies theoretical and empirical research methods, and scientific literature and legal documents are examined to carry out a theoretical analysis of the government budget and the principles of its formation. Research was conducted using data grouping, graphical data analysis and other descriptive statistics. Theoretical analysis revealed that the majority of budgetary principles were successfully implemented and defined in law. The principles of transparency, annuality and unit of account were accomplished fully, compared with principles of fullness, economy, reality and unity that were not fully accomplished. The principle of equilibrium was not accomplished at all. Analysis revealed that in the years 2004-2014, Lithuania had a budget deficit. The government's budgetary income and expenditure had a tendency to increase unevenly. On average, income rose a little more than expenditure, but still made up less of the budgetary balance than expenditure. Aside from this, Lithuania did not follow the Maastricht criteria for several years and the government deficit-to-GDP ratio exceeded 3 per cent.
Purpose—to achieve a more detailed assessment of regional differences, exploring regional infrastructure and human capital usage efficiency and to display analysis capabilities of spatial data efficient frontier method. Design/methodology/approach—the data envelopment analysis (DEA) is applied to find the efficient frontier, which extends the application of production function of the regions. This method of mathematical programming optimization allows assessing the effectiveness of the regional spatial aspects presented. In recent studies this method is applied for evaluating the European Union regional policy issues. Findings—the application of DEA reveals its feasibility for regional input and output studies to evaluate more detailed and more reasonable fund allocation between Lithuanian regions. This analysis shows that in the comparatively efficient Lithuanian regions, such as Vilnius and Klaipėda, "the bottleneck" of usage of transport infrastructure and regional specific human capital is reached. It is stated that decision-making units could enhance region attractiveness for private investors by improving indirect factors in these regions. For practical significance of the study the results are compared with German regional analysis, conducted by Schaffer and other researchers (2011). Practical implications—the practical value of this work is based on giving more accurate planning tools for fund allocation decisions in Lithuanian regions while planning infrastructure and human capital development. The regional indicators were analyzed for 2010. ; Šiuo metu pastebima regionų ekonominio vystymosi diferenciacija reikalauja visapusiškesnio regionų ekonominio augimo netolygumų tyrimo. Regionai, nepasiekę reikiamo išsivystymo lygio, neleidžia tinkamai suklestėti visos valstybės nacionalinei ekonomikai. Mažos pajamos vienam gyventojui ir nepakankamas neišsivysčiusių šalies regionų ekonomikos augimas yra vienos didžiausių regioninės politikos problemų (Okubo, 2012). Remiantis ES konvergencijos analize (M. Butkus, K. Matuzevičiūtė, 2011), šalių vidinių teritorinių vienetų ekonomikos augimo diferenciacija per 1995–2010 m. laikotarpį išaugo apie 22,6 proc. Tai rodo poreikį tirti smulkesnių teritorinių vienetų ekonominės plėtros netolygumų priežastis bei numatyti privačių investicijų pritraukimo į prasčiau besivystančius regionus priemones. Tyrimo tikslas – detaliau įvertinti regionų netolygumus, tiriant regionų infrastruktūros ir žmogiškojo kapitalo išnaudojimo efektyvumą ir pagrindžiant erdvinės duomenų apsupties analizės metodo taikymo galimybes. Metodologija. Tyrimui pritaikyta išplėstinė duomenų apsupties analizė, vadinama efektyvios ribos nustatymo analize, kuri praplečia ekonomikos augimo lygties taikymo galimybes ekonominiuose tyrimuose. Tai – matematinio programavimo optimizavimo metodas, kuris matuoja subjektų techninį efektyvumą, esant keliems sąnaudų ir produkcijos matams. Pritaikius šį metodą yra apskaičiuojami tiriamųjų subjektų reliatyvūs techninio efektyvumo įverčiai, kuriais remiantis yra įvertinami tiriamųjų subjektų technologiniai netolygumai. Šis metodas leidžia nustatyti regionų efektyvumą erdviniu požiūriu. Naujausiuose regionų moksliniuose tyrimuose duomenų apsupties metodas yra taikomas Europos Sąjungos regioninės politikos problemų nagrinėjimui ir galimų priemonių sprendimui. Rezultatai. Tyrime taikant erdvinį duomenų apsupties metodą analizuoti Lietuvos NUTS3 lygmens regionai. Tirti netiesioginiai, bendri veiksniai, didinantys regionų patrauklumą privatiems investuotojams – regionų transporto infrastruktūra ir žmogiškasis kapitalas. Regionų transporto infrastruktūra analizuota dviem aspektais. Vertinta vidinė regionų transporto infrastruktūra pagal kelių intensyvumą regione ir išlaidas kelių renovacijai bei konstrukcijai ir išorinė transporto infrastruktūra susisiekimo su kitais regionais greičio požiūriu. Regiono žmogiškojo kapitalo veiksnys apima tiek regiono darbo jėgos dydžio, tiek ir darbo jėgos išsilavinimo lygio įvertinimą. Darbe apskaičiuoti regionų efektyvumo įverčiai leido identifikuoti neefektyviausius šalies regionus, kuriuose turi būti daugiau dėmesio skiriama tiesioginėms ekonomikos, verslo skatinimo priemonėms. Tyrime įvertinti panašūs regionai technologiniu požiūriu bei numatytos neefektyvių regionų BVP, efektyviai išnaudojant turimus išteklius. Praktinė reikšmė. Tyrimo rezultatai buvo lyginti su Vokietijos NUTS3 regionų analize, atlikta Schaffer ir kitų mokslininkų (2011). Remiantis gautais rezultatais identifikuotos galimos Lietuvos regionų plėtros kryptys infrastruktūriniu ir žmogiškojo kapitalo plėtros požiūriu. Duomenys analizuoti pagal 2010 m. regionų vystymosi rodiklius. Originalumas/vertingumas. Šiame tyrime analizuojamas erdvinis duomenų apsupties analizės metodas pirmą kartą pritaikytas Lietuvos NUTS3 regionų kelių infrastruktūros ir žmogiškojo kapitalo išnaudojimo efektyvumo vertinimui. Darbe siekiama atskleisti metodo taikymo galimybes, kaip efektyvios priemonės finansinių išteklių paskirstymo tarp regionų sprendimų pagrindimui.
The nonparametric methods, such as data envelopment analysis, free disposal hull and order-α frontier analysis, have been applied in this study to evaluate the efficient frontier which extends the application of the production function of regions. These mathematical programming methods allow evaluating the effectiveness of the regional spatial aspects. In recent studies, efficient frontier methods are applied to evaluate regional policy issues of the European Union. The purpose of this article is to present a more detailed evaluation of regional disparities by analysing regional infrastructure, human capital efficiency, and linkages among the regions. The application of frontier methods reveals their feasibility for studying regional inputs and outputs to asses a more detailed and more reasonable allocation of funds among Lithuanian regions. A more detailed territorial breakdown is selected in this paper to identify a wider scale of efficiency differences among the regions. From the practical point of view and according to the results, more balanced planning tools are suggested for fund allocation decisions in Lithuanian regions while planning infrastructure and human capital development. As efficient regions are identified, it is recommended to invest in more indirect factors to enhance regional growth. while in inefficient regions more emphasis should be made on more direct interventions to foster economic activity because current investments give insufficient returns. The present type of research is a case study.
