Social Partner Involvement in Latvia Special Economic Zones

Abstract

Abstract. With increasing global competitiveness, countries must have instruments to attract and keep businesses. One way involves attracting a core of foreign investors with the help of special economic zones (SEZs) and integrating them in local economy, causing industrial clustering. The aim of this research is to lay the groundwork for a comprehensive analysis of clustering potential in Latvia via its special economic zones. The empirical research relied on survey results conducted among 27 business associations with the combined member count of over one thousand businesses, operating in 12 broad fields. Initial results gathered from the 24 organizations that responded to the interview questions show that there is a very low degree of involvement in the SEZ by various social partners. This shows that something has gone awry in the way SEZ operate in Latvia and has led to a lot of missed opportunities from both sides.

Foreign Direct Investment and Special Economic Zones in Latvia

“…The potential for clustering effect occurs from the involvement of businesses both within and outside of SEZs with each other and establishing mutual supply, labour and knowledge networks. Early research conducted in this area has revealed that there is very little obvious involvement between the businesses in SEZs and members of the various Latvian business associations and their members (Gulbis & Geipele, 2016).…”