<abstract xmlns="http://www.w3.org/1999/xhtml"> We used anonymized micro data from Labour Force Survey to estimate the ethnic wage gap in Latvia and find the factors that explain it. We found that a notable ethnic wage gap still exists in Latvia with non-Latvians earning 10 % less than Latvians in 2015. The results of Oaxaca-Ransom decomposition show that approximately two thirds of the ethnic wage gap are explained by differences in characteristics with the most important effects in favour of Latvians caused by segregation in better paying occupational groups, having Latvian citizenship and better education (higher education levels and more favourable segregation by education fields). This was partly offset by favourable segregation in sectors for non-Latvians. Quantile regressions show that ethnic wage gap is statistically significant in all deciles of wage distribution.</abstract>

Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?

<abstract xmlns="http://www.w3.org/1999/xhtml"> Patients′ satisfaction plays the central role in management of private hospitals, therefore the development of appropriate methodology and its adjustment to specific needs is necessary. The goal of the research is to develop and test methodology for the assessment of patient satisfaction in a private for-profit orthopedic hospital in Latvia that is consistent for results, as it should help to determine potential areas of progress in the coming periods. Moreover, satisfied patients are likely to return, to fulfil medical treatment requirements achieving better clinical results, as well as to recommend the hospital to others thus contributing to better overall performance of the organization. The results of the study show that the developed tool could be a valid instrument for measuring patient’s satisfaction, allowing to improve the existing processes inside the organization, as well as benchmark different segments in the hospital as far as possible and develop best-practice approaches.</abstract>

Measuring Patients′ Satisfaction in For-Profit Orthopedic Hospital

<abstract xmlns="http://www.w3.org/1999/xhtml">This study supports topical discussion about the possibilities to use social media as a tool for citizen involvement in democratic processes. Contemporary academic views and statistics on the use of social media for communication between institutions and citizens are gathered in the study. The research focus is on social media publications, analysing the content of four European Parliament’s social media accounts in Latvian during the period from 1 July 2015 to 31 December 2015. The aim of the research is to identify the potential of the information published on European Parliament’s social media accounts in shaping the European citizenship notion among youth in Latvia. The conclusions present clear idea on the frequency of European citizenship topics in the corresponding social media accounts as well as on the amount of feedback and the share of youth involvement in this communication. The results of the study suggest that for now European Parliament’s social media publications in Latvian have little potential to develop the notion of European citizenship and there is a need for a well-considered use of social media to assure that the opportunity for two-way communication is fruitfully used.</abstract>

European Institutions On Social Media ‒ Shaping the Notion of European Citizenship

<abstract xmlns="http://www.w3.org/1999/xhtml"> The paper covers research findings on mussel farming and the analysis of current situation in mussel farming in the Baltic Sea. The mussel farming has a development potential in the Baltic Sea region. Some developers have chosen progressive activities to achieve the aim. For example, in Sweden the development of mussel farming is suggested as one of the instruments for reducing eutrophication. Several countries in the Baltic Sea region are in the beginning phase of the mariculture development. The following research methods were used in the research: studies of scientific publications, case studies and document studies on some important factors impeding the development of mussel farming in the Baltic Sea.</abstract>

Mussel Farming and Its Potential in the Baltic Sea

<abstract xmlns="http://www.w3.org/1999/xhtml"> The research investigates the question of the importance of mentioning the name of the employer in online and offline social networks. The exchange of information is an important part of social networks and social capital theory. Companies can use the networks of their employees to recruit new hires and to check habits and interests of likely new employees. To do that, the employee has to mention the name of the company in these social networks. The paper compares different real social networks used by family and friends and private and business social network sites (SNSs) as online social networks and compares the differences between men and women. The empirical research has been done by a survey. The survey data are analysed using the main indicators of descriptive statistics, frequency, t-test and cross tables. The results of the research reveal that real social networks are more accepted than virtual social networks. The difference in use of social networks between genders is confirmed.</abstract>

Revealing Employer’s Name in Social Networks

<abstract xmlns="http://www.w3.org/1999/xhtml">According to the agency theory (Jensen &amp; Meckling 1976), it is expected that there exists a positive relationship between corporate governance and company performance which is also generally assumed in recent research (Dignam &amp; Galanis 2016). This relationship is investigated in the study performed by the author of this paper. Two different approaches were chosen in parallel: (1) quantitative data analysis, based on financial figures and corporate governance variables, and (2) a survey of supervisory board members of listed German companies. This paper is about the results of structured interviews with 30 supervisory board members. The survey confirms that corporate governance regulations have an important influence on the administration of supervisory board activities and on board competence. Many supervisory board members stated that the German Corporate Governance Codex leads to extended meeting time to fulfil regulatory requirements, more data requirements to identify and estimate risk issues and to rising risk awareness. The interview results converge with the results from the multivariate analysis.</abstract>

Survey On Competence and Administration of Supervisory Board Activities in German Stock-Listed Companies

<abstract xmlns="http://www.w3.org/1999/xhtml"> Human capital, affected by the demographic determinants, nowadays becomes a novel driver of change and regional development. Changes in the modern economy determine the future leading role of human capital, especially its creative dimension in the development of modern, sustainable competitive advantages of countries and regions. Considering the negative demographical tendencies in the Baltic States, the aim of this paper is to analyse and forecast the development of creative potential in Lithuania, Latvia and Estonia. Our methodology is based on the estimation of a regression model describing the relations between Global Creativity Index (GCI) and its components with the available demographic data in 28 European Union member countries. Model estimation results indicate a particular importance of population age composition for all GCI components, while education attainment levels appear to be highly significant for the technology and talent components. Using the estimated model parameters, authors elaborate a simple forecast for the three Baltic States using the current demographic projections, while outlining the strengths and potential weaknesses of each country in the long-term perspective.</abstract>

Demographic Determinants of Creativity: The Analysis of the Development of Creative Potential and Forecast for the Baltic States

<abstract xmlns="http://www.w3.org/1999/xhtml"> In today’s uncertain and highly competitive business environment, the difficulty to make strategic investment decisions is growing. The dominant discounted cash flow analysis requires the assumption of perfect certainty of project cash flows. However, under uncertainty traditional DCF approach falls short of providing adequate strategic decision support, and this situation demands new methods for investment evaluation. Real options approach (ROA) has shown the potential for valuation of strategic corporate investment decisions and managerial flexibility in situations of high uncertainty. Under ROA, projects are viewed as real options that can be valued using financial option pricing techniques. This framework allows their owner to keep investment options open and to benefit from the upside potential of an opportunity while controlling the downside risk. The main aim of this research is to investigate the feasibility of real options approach and traditional DCF analysis for assessment of strategic investment projects under environmental uncertainty.</abstract>

Real Options and Discounted Cash Flow Analysis to Assess Strategic Investment Projects

<abstract xmlns="http://www.w3.org/1999/xhtml"> There are significant losses in tax revenues across the European Union (EU). National governments lose billions of euros in the revenues from non-paid taxes and other illegal activities. The fight against aggressive tax planning, tax fraud and illegal activities is on the agenda of the EU, OECD and all the national governments. However, due to the size of tax losses it should not be treated just as tax evasion, but rather as tax terrorism! Therefore, the author has set criteria when tax evasion should be named as “tax terrorism” as well as designed the principles for tackling tax terrorism and other ways of non-payment of taxes. The tax evasion could be treated as “tax terrorism” in case of international evasion from taxes by organized groups of persons for criminal purposes as well as when it creates significant losses in government revenues. The term “tax terrorism” would have impact to communication and cause response of society and politics, therefore it would have more social and political consequences.</abstract>

Criteria for Defining Tax Evasion as Tax Terrorism

<abstract xmlns="http://www.w3.org/1999/xhtml"> The article deals with basic characteristics and fundamentals of innovation management of global value chains and considerations on the example of space industry based on the factor of interaction in the creation of new products in global value chains. General context of global value chains as a factor of strategy development and characteristics and factors of global value chains in space industry is considered. Mechanism of the development of space engineering as global industry at the national level is proposed. The author proposes to consider four groups of level of characteristics of the competitiveness of technological component for integration into the global value chain of space industry projects.</abstract>

Basics of Optimization Strategy for Integrating Space Industry Technology Package Into Global Value Chains

<abstract xmlns="http://www.w3.org/1999/xhtml"> In everyday lives, we more and more use different technology products to make our lives easier and faster. We often do not realise that we are switching our lifestyles to the online platform - we do everything mostly online - meet and communicate with others, watch videos and listen to favourite songs, choose and buy different things. The main question is - can we trust everything that we see on the screen? Is the explanation of “trust” the same in real life and in online sphere? Authors of the paper compare the concept of “trust” in offline trade market with that in online trading. The following methods were used - literature study and analysis, consumer survey and statistical analysis. Consumer survey is already in the process and is to be continued during the next 2 years with the purpose to compare changes through years. Participants of the survey are the inhabitants of Latvia of different age groups, location, profession, etc. The authors have continued the survey to make it more complete and to find out new tendencies. It is possible to use the research results in both ways ‒ theoretical and practical in respect of choosing an effective communication with consumers, in creating a long-term relationship with them, and in regard to increasing the customer loyalty level and level of “trust”.</abstract>

Comparison of E-Trust and Trust Concepts in Online and Offline Dimensions

<abstract xmlns="http://www.w3.org/1999/xhtml"> The presented research aims to contribute to the conceptualisation of the nation-brand of Latvia with the purpose of stimulation of national export performance. The subject of the research is three aspects presumably challenging the branding of Latvia with reference to national export development. The investigated challenges are the barriers and opportunities for green-branding of Latvia; the absence of the generally accepted indication of the geographical identity of the Baltic region; and the contradictable popular image of Latvia as a cheap country. The research poses two research questions inquiring into the issues of nation-branding of Latvia currently being faced in the context of exports and possible measures to overcome them. The applied research methods are theoretical analysis of scientific literature and empirical analysis of the representation of Latvia on the official website of the Investment and Development Agency of Latvia and its comparison with the official websites of respective institutions in Lithuania and Estonia. The research observes the interconnection between the defined challenges, offers the perspective for the possible transformation of the challenges into nation-branding opportunities, and estimates the green brand of the country as a gateway for feasible solution for the defined challenges and for the stimulation of national exports. In addition, the research identifies further challenges the nation-branding of Latvia is currently facing for further discussion.</abstract>

Challenges of Nation-Branding for Stimulation of Latvian Exports

<abstract xmlns="http://www.w3.org/1999/xhtml"> The article presents the results of an original research, conducted to evaluate the potential of renewable resources for increasing the sustainability of Belgorod region development. It is one of the most developed regions in Russia with diversified structure of economy. Significant feature of the region’s economy is a lack of domestic energy production and dependence on energy supplies from neighbouring regions. To define the most suitable way to cover the lack of energy and to contribute to the solution of environmental problems, the potential of renewable energy resources, such as solar radiation, wind speed, and biomass energy was estimated. The research was conducted using a variety of sources, such as scientific articles, statistical data, reports of industrial companies and agricultural farms, cartographic materials, space images and materials of own field researches. The most effective way of regional development, which contributes to the decline of energy intensity and environment improvement, is agricultural waste recycling by biogas production. The conclusions on the efficiency of renewable energy sources were based on calculations of GRP energy intensity in cases of traditional and alternative energy systems.</abstract>

Renewable Energy Efficiency for Regional Development: Case of Belgorod Region

AHEAD OF PRINT

Volume 37 (2023): Issue 1 (January 2023)

Volume 36 (2022): Issue 1 (January 2022)

Volume 35 (2021): Issue 1 (January 2021)

Volume 34 (2020): Issue 1 (January 2020)

Volume 33 (2019): Issue 1 (January 2019)

Volume 32 (2018): Issue 1 (February 2018)

Volume 31 (2017): Issue 1 (August 2017)

Volume 30 (2017): Issue 1 (April 2017)

Volume 29 (2016): Issue 1 (August 2016)

Volume 28 (2016): Issue 1 (April 2016)

Volume 27 (2015): Issue 1 (August 2015)

Economics and Business

"Economics and Business" is a peer reviewed professional and international journal which includes the results of theoretical and applied research in the following areas of Business Management and Economics:  International Business and Marketing; Organizational Development and Challenges; Leadership and Corporate Governance; Entrepreneurship and Business Development; Operations and Supply Chain Management; Human Resource Development; Marketing and Management Issues; Innovation and Change Management; Banking and Finance; Economic Theory and Policy Issues; Case Studies.   Why subscribe and read  "Economics and Business" is a peer reviewed professional and international journal covering a wide range of issues related to economics and business in the context of globalization and new economy development. The journal includes the results of theoretical and applied research of scientists and academics, as well as of Master and Doctoral students.  Why submit  All manuscripts are subject to double blind peer review by two internationally recognised experts. The journal has neither article processing charges (APCs) nor article submission charges.  Rejection Rate  &gt;15%  Archiving  Sciendo archives the contents of this journal in Portico - digital long-term preservation service of scholarly books, journals and collections.  Plagiarism Policy  The editorial board is participating in a growing community of Similarity Check System's users in order to ensure that the content published is original and trustworthy. Similarity Check is a medium that allows for comprehensive manuscripts screening, aimed to eliminate plagiarism and provide a high standard and quality peer-review process. 