Elita Jermolajeva,

Latvia University of Agriculture,

Jelgava, Latvia,

E-mail: elita.jermolajeva@gmail.com

Smart Growth as a Tool for Regional Convergence: Evidence from Latgale Region of Latvia

Baiba Rivža,

Latvia University of Agriculture,

Jelgava, Latvia,

E-mail: baiba.rivza@llu.lv

Ludmila Aleksejeva,

Daugavpils University,

Daugavpils, Latvia,

E-mail: ludmila.aleksejeva@du.lv

Viktorija Šipilova,

Daugavpils University,

Daugavpils, Latvia,

E-mail: viktorija.sipilova@du.lv

Inta Ostrovska,

Daugavpils University,

Daugavpils, Latvia,

E-mail: inta.ostrovska@du.lv

Abstract. One of the basic principles of the European Union functioning is even and balanced regional development. However, considerable socioeconomic disparities can be still observed across the regions in Latvia, with its monocentric, i.e., capital city-oriented, distribution of people and economic activities instead of a polycentric one. This factor negatively affects the development of the country’s regions. According to the NUTS classification of the European Union, Latvia represents a NUTS 3 region, yet there are five planning regions and six statistical regions in country, and the overall situation along with internal processes in these regions are radically different. Within the framework of the Latvian National Programme EKOSOC-LV, the present paper focuses on smart growth as a tool for regional convergence to be applied in the context of regional development. A new Smart Development Index was created and the Analytic Hierarchy Process was employed to analyse one of the regions in Latvia – Latgale and its 19 municipalities focusing on the expansion of local entrepreneurial activity and the important role of innovative high-tech enterprises in it.

Received: March, 2017

1st Revision: July, 2017

Accepted: October, 2017

DOI: 10.14254/2071-789X.2017/10-4/16

JEL Classification: O18, R11

Keywords: regional development, smart development and specialisation, Latgale rural municipalities of Latvia