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Baltic Countries Capital, Labour, Energy, Material and Service inputs

Periodic Reporting for period 1 - BALTIC KLEMS (Baltic Countries Capital, Labour, Energy, Material and Service inputs)

Okres sprawozdawczy: 2017-09-18 do 2019-09-17

The determinants of labour productivity growth are at the centre of both the European Union's contemporary research and policy agenda. Labour productivity growth is the key variable in economic growth and development theories dating back to R. Solow, and in contemporary approaches related to sustainable development. The importance for society is grounded on the fact that there is a shortage of research and results in this particular topic for the Baltic countries. While both the EU KLEMS and INTAN Invest databases contain complete information in this regard on other more developed economies. However, the Baltic countries have lacked, until now, this type of information and as a consequence they have no cultivation of research ability in this particular area. As a result, it was impossible to know the strengths and weaknesses of these countries and their position in comparison with other more developed countries. Following the patterns of change and the linear stages of economic growth and development theories, each country passes through particular stages of development that others have already experienced. For this reason, it is especially important to lift the curtain for the Baltic States and examine their path and foresee the possible future changes they may experience by comparing them with the path taken by other more developed economies.
The project has applied the growth accounting methodology to the Baltic countries in order to obtain detailed productivity growth determinants at industrial level and in the aggregated market economy. To this end, a new database —following the EU KLEMS and INTAN Invest methodology with a particular focus on intangible capital— has been constructed. The project analyses the determinants and tendencies of growth for the Baltic countries within the context of more developed economies (e.g. Denmark, Germany, Spain, Sweden) and uncovers the productivity gains associated with different types of capital assets. First, an overview of the economies and the structural changes they have experienced during the period analysed is presented. Second, a strategy is designed to derive new intangibles and EU KLEMS data for the Baltic countries. Third, statistical data are constructed for all economies and the growth accounting method is applied in order to obtain comparable results. Finally, an economic analysis is conducted to detect certain aspects of the growth determinants for differently developed and structured economies. In conclusion, the economic analysis of the productivity growth determinants for the Baltic countries is performed for two time periods, namely before and after their entry into the European Union.
The overall objectives are as follows:
1. To compose the platform of EU KLEMS data for the Baltic countries.
2. To compose the platform of INTAN Invest data for the Baltic countries.
3. To apply the EU KLEMS methodology and the growth accounting method for the Baltic states (Estonia, Latvia, Lithuania) and more developed countries (Denmark, Germany, Spain, Sweden). Derive results.
4. To compare the results derived from two complimentary perspectives: determinants of productivity growth and patterns of structural change.
5. To communicate and disseminate the results to society.
6. To continue working on this topic in order to have up-to-date information for the Baltic states within the context of others.
The project has fully accomplished the objectives set for the period.
The research objectives for the period 1995–2015 regarding research methodology, approach and training have all been achieved and are described in detail in the two following publications:
o ‘Productivity growth determinants of differently developed countries: comparative capital input results';
o ‘Productivity determinants and their contributions to productivity growth in the Baltic countries before and after their entry into the European Union: a comparative industrial perspective’.
• Scientific goals and research objectives have been reached.
• Training on the application of the growth accounting model and scientific research has been acquired and accomplished.
• Two scientific manuscripts for journals, indexed in ‘Clarivate Analytics Web of Science’ database, have been prepared:

* Lankauskiene, T. (2020). «Productivity growth determinants of differently developed countries: comparative capital input results». Statistika: Statistics and Economy Journal, in press (already accepted for publication).
Additionally, this document is at Ivie´s EC Working Paper Series: DOI: http://dx.medra.org/10.12842/WPASEC-2020-02
RePEc access: https://econpapers.repec.org/scripts/search.pf?ft=&adv=true&wp=on&art=on&bkchp=on&soft=on&pl=&auth=on&sort=date&lgc=AND&aus=Lankauskiene&ar=on&kw=&jel=&nep=&ni=&nit=epdate)

* Lankauskiene, T. (2019). «Productivity determinants and their contributions to productivity growth in the Baltic countries before and after their entry into the European Union: a comparative industrial perspective». Eastern Journal of European Studies 10(2). December: 63–88.
Journal Open access: http://ejes.uaic.ro/articles/EJES2019_1002_LAN.pdf
RePEc access: https://econpapers.repec.org/article/jesjournl/y_3a2019_3av_3a10_3ap_3a63-88.htm

• Project management has been accomplished.
• Knowledge of a new foreign language has been acquired (Spanish language courses for foreigners Enforex [Valencia, Spain] obtaining C1 level, July-November 2018).
• Participation at the Researchers’ night in Valencia on 30 September 2017.
• Participation at the 5th WORLD KLEMS Conference at Harvard University on 4-5 June 2018 (Massachusetts, USA).
• Ambassador of Marie Curie activities and presentation of project results at the lecture for students at the University of Valencia on 10 September 2019 (https://www.slideshare.net/Iviesa/baltic-klems).
• Project activities have been disseminated and communicated by other means such as: LinkedIn, Research gate, Facebook, Orcid, Ivie (host institution) website and newsletters.
• Data results are scheduled to be presented at the forthcoming 6th WORLD KLEMS Conference in Washington D. C. in 1-2 June 2020.
• Integration of the Baltic countries in a first class research group addressing a common crucial problem.
• Observation of the slowdown of productivity growth from a complementary “peripheral” (Baltic countries + Spain, a southern country) perspective which has provided a fresher approach.
• The work carried out contributes towards reaching European policy objectives and strategies to boost productivity.
• The potential users of the results are wide and include researchers, academic society, European policy makers and the society at large.
Researcher as Marie-Curie Ambassador at University of Valencia and results presentation, 10/09/2019
"The Green Bridge" connecting old city and new city in Vilnius, the capital of Lithuania
Resercher as Marie-Curie Ambassador at University of Valencia and results presentation, 10/09/2019
Researcher with the supervisor Professor Matilde Mas and colleagues at the host institution IVIE
Researcher at the Workshop on the facets of Productivity, September 2017, Valencia,Spain
Researcher at Reunion at IVIE idea, May 2018, Valencia, Spain
Researcher at the 5th WORLD KLEMS Conference, Harvard University, Massachusetts, USA, June 4-5, 2018