The competitive ability of Latvian export: current situation and prospects

Abstract

Purpose: Analysis of the competitive ability of Latvia's exports is a most relevant subject in light of Latvia’s negative foreign trade balance. The aim of this study is to analyse the competitive ability of Latvia's exports.

Methods: The Herfindahl–Hirschman Index was calculated to establish the diversification level of export markets, and the method developed by G. Lafay was used to determine the most competitive products; the market positions of exported goods were appraised based on the Boston matrix. Tools developed in the interactive Trade Map system were employed for the study.

Results: The most competitive Latvian products as well as the Latvian export products with the greatest potential on the world market have been established in this article.

Application: The results of this study may be useful as reference points in developing Latvia’s trade policy and determining priority sectors in Latvia to ensure they are supported and to encourage their development.