This paper examines the effect of political connections on firm performance. It draws on the universe of all registered firms in Latvia to construct a unique dataset of firms connected to politicians in 1996 to 2005. This paper shows that the effects of connections to politicians vary depending...

This paper sets out to investigate entrepreneurs in Latvia, which is one of the most advanced transition countries, having joined the European Union in 2004. Empirically, the paper draws on results from a representative survey of the Latvian population, based on the method of the Global...

This paper examines the inflation experience of the EU new member states (NMS) since 2000, with particular focus on the three Baltic countries – Estonia, Latvia and Lithuania. Apart from being a natural focus of interest for residents of these countries it appears that their recent inflation...

This report analyzes concentration in the grocery retail market in the three Baltic countries: Estonia, Latvia and Lithuania. The markets (including some comparator Eastern and Western European markets) are analyzed using two standard measures: the Herfindahl Hirschman Index and the four firm...

Global energy demand continues to grow. Crude oil production is stagnating, coal's production cost is rising fast on the back of carbon pricing, electricity generating capacity is getting old and nuclear power has its own environmental and political issues. In addition there is the concern about...

The global crisis hit hard in Iceland and Latvia. Economic development prior to the crisis, as well as response to the crisis, was different in these two countries, also yielding different results. Prior to the crisis both countries privatized their banking system. In Iceland the banks were sold...

The paper investigates whether the evidence suggests that a broadband package on the lines of the Obama package in the US or the Digital Britain initiative in the UK could be an appropriate instrument in recession-hit Latvia. The idea would be to use the opportunity of the recession to create a...

What a difference a year makes. Our previous report, from June 2007, focussed on overheating of the Latvian economy and rising inflation. Now, some 14 months later, the Latvian economy has entered recession as measured by two consecutive quarters of seasonally adjusted GDP decline. At the same...

This investigation addresses the issue of what truth there is behind the widespread belief that too few Latvian produced food products are available in Latvian shops. Using some simple concepts from economics we construct a number of empirical indicators that permit international comparisons to...

This report is the second in an annual series produced by BICEPS and SSE Riga on macro policy issues. The 2007 report is again on inflation but this time focusing only on Latvia. The inflation problem in Latvia has not gone away and if anything has intensified since early 2006 to the extent that...