Contemporary studies show that military power depends not only on manpower, weapons, or resources, but in many cases, success on the battlefield is determined by the potential of human capital, including knowledge, skills, competences, and other capacities [1; 2]. Using a cost-based approach, the author focuses on the input side assessing military human capital potential in the context of defence expenditure – economic development nexus in the Baltic countries, such as Lithuania, Latvia, and Estonia. The investigation covers the period between 2004 and 2020. Defence expenditure on personnel has been used as a proxy for military human capital potential, and real gross domestic product (GDP) per capita as a proxy for economic development. Research is carried out using econometric methods, including Spearman’s correlation analysis and Automatic Linear Modelling (ALM). The research results reveal that investments in military personnel have significant and positive impact on economic development in the Baltic states. Defence expenditure on personnel explains 63.7 percent of variation in real GDP per capita in Lithuania, 71.3 percent in Latvia, and 63.4 percent in Estonia. The author hopes that the findings of the investigation will extend the scope of research across the Baltic States and will be useful for the achievement of Sustainable Development Goals (SDG 8, economic g rowth).
The paper has investigated the patterns of defence expenditure in the Baltic countries, such as Lithuania, Latvia and Estonia during the period of 2004-2018. Distribution of defence expenditure by main category has been analysed and the main tendencies have been provided. The author has done this by applying total expenditure and decomposition approaches. Firstly, the author has calculated the intensity rate of defence expenditure‘s structural changes in order to assess which country’s defence spending structure has been more dynamic over the period analysed. Secondly, Finger-Kreinin indicator has been used to compare defence expenditure distributions and determine their dissimilarities among the countries under consideration. The author believes that the research highlights key structural trends of defence expenditure and could be helpful for policy makers.
This paper has aimed to consider how government expenditure contributes to economic growth by focusing on both the level and composition of government spending, in connection to the dynamics of GDP per capita growth. The investigation covers the period from 1997 to 2017. The authors have applied total expenditure approach analyzing interrelationships between government expenditure and economic growth and division approach examining and comparing the distributions of government expenditure in the selected European Union countries. The authors have applied descriptive statistics, the Pearson’s correlation, intensity rate of structural changes and Finger-Kreinin indicator. The findings have suggested the following: 1) there is no evidence on the relationship between general government expenditure and economic development in the European Union countries; 2) the countries with a greater proportion of productive spending, such as Cyprus, Greece, Lithuania, Hungary, Estonia, Slovakia have a low GDP per capita indicator. Economically strong countries, such as Denmark, France and Sweden have relatively low level of productive expenditure; 3) economically stronger countries have more stable compositions of government expenditure than economically weaker ones; 4) the countries with a similar real GDP per capita have been characterized by more similar government spending structures. As the economic gap between countries grows, divergence in allocation of government spending increases. The findings of this research could provide important guideline for the managing of government expenditure in the European Union countries. Moreover, it can serve as a guideline to a public budget management in the countries under consideration.
This paper has aimed to explore the inter-linkages of economic growth, poverty and inequality in the context of the European Union (EU) countries during the period of 2005 – 2016. Descriptive statistics analysis and econometric methods have been applied for this purpose. Research results have revealed statistically significant interrelationships between growth and poverty in half of the European Union countries. Moreover, in majority of these countries poverty has been elastic of economic growth. It should be noted, that the countries with higher level of economic development have relatively smaller share of population living below the national poverty lines. However, we cannot say the same about the growth – inequality relationships, which have varied across the EU countries. There are economically strong countries with relatively high income inequality and economically weaker countries with lower income distribution coefficients. However, in many cases poverty and income inequality tend to move in the same direction, i.e. as one increases, the other as well and vice versa. Finally, the insights of the research could be useful in developing a common strategy for smart, sustainable and inclusive growth and achieving the goals for Europe 2020.
The articles analyses the penetration of social media through personal use into daily life and the relation of this phenomenon to national security. A survey of Lithuanian higher-school students aged 18-29 was conducted according to quantitative research methodology. Young people actively use social networks for various purposes (personal, learning, work, recreation). Statistically, each individual, aged 18-29, has personal profiles on four social networking sites, yet most often does not adequately evaluate and link the use of social networks with possible national security threats and risk factors. Less than two-thirds of young people have heard something of possible threats and risk factors; however, the impact of social media on national security is not considered significant. Thus, it seems that young people lack information about real threats presented by social networks to both personal data storage and national security.
There is major concern with Lithuania’s industrial development because its manufacturing structure is increasingly dependent on the consumption of energy. In spite of the Lithuanian energy intensity decrease more than 35 percent in the last decade, the energy required to produce a unit of output in Lithuania twice exceeds the average of the European Union countries.
This paper investigates the energy intensity from a production theoretic framework and uses annual data of 1998-2011 to measure energy intensity in the Lithuanian manufacturing sector. The investigation compares energy intensity in manufacturing across different activities, based on several models. The results of the research show considerable variation in energy intensity across the activities. Based on energy intensity ratio, the Lithuanian manufacturing activities are classified into three categories, such as high energy- intensive, moderate energyintensive and low energy- intensive. The research reveals a strong and negative interrelationship between intensity of energy consumption and manufacturing production. Over a period of 1998-2011, the contribution of high energy-intensive industries to total manufacturing value added was increasing and amounted to 30 percent at the end of 2011. Finally, the research provides insights, that restructuring of the activities from energy intensive industries towards more technologically advanced ones might potentially lead to higher energy efficiency and it could be one of the most important routes to sustainable development.
This study consists of two research aspects. First of all, the author analyses the relationship of energy consumption and economic growth in the context of 13 selected countries in the period of year between 1990 and 2010. Secondly, using statistical techniques the paper takes into account cross-sectoral dependence when analyzing the relationship between energy consumption and economic structures of the same countries. Based on the energy consumption, the countries are divided into three groups: low energy consumption group, middle energy consumption group, and high energy consumption one. Statistical methods, including correlation analysis are employed for the estimation of the structural changes of economy and relationship between energy consumption and economic structure in each of the three groups. In general, the results of this study indicate that energy consumption is closely related to all economic activities for all groups of countries; however the case of Lithuania reveals the absence of relationship between energy consumption and industrial sector. Moreover, in the context of comparative analysis, China, as a high energy consumption country, has a completely different picture of economic structure as well as relation between energy consumption and structural changes. Economic sectors, such as industry, services and agriculture depend on energy resources, but in different degree in these three groups of countries.
Economic growth and country’s industry dependence on the assessment of energetic resources arise as comprehensive approach. The increase in global energy prices, significant dependence on imported energy and increase in energy consumption might result international competitiveness of the country and pose constrains towards sustainable development. Restructuring of the economies from energy intensive industries towards more technologically advanced products and services might lead to higher value added per unit of product, and energy saving sectors with lower energy consumption per unit of output. In order to sustain international competitiveness of exporting sectors, it is necessary to diminish gradually intensity of expensive energy resources. The problem of this study related to the scientific discussion concerning relationships among the intensity of energetic resources’ use, economic growth and export. The analysis of the theoretical and empirical studies of the effects of energy on the economic growth and export showed that energetic resources precede and predict the economic growth and export, however, the question concerning the direction of causality remains open, since unobserved variables may drive both developments. This paper analyzes the case of Lithuania. The authors investigate economic growth and industry sectors’ export dependence on energetic resources.
Sustainability and security assessment currently arises as comprehensive and integrated approach. Sustainable development is a fundamental and overarching objective of the European Union (EU) countries. It aims to improve the quality of life of citizens through sustainable communities that manage and use resources, by linking economic development and security, protection of the environment and social justice. Measuring progress towards sustainable development is an integral part of the EU Sustainable Development Strategy (SDS), that defines objectives and targets intended to put the European Union on a path towards sustainable development. The issue of economic security and sustainability has been analyzed in theory from different perspectives. In many studies the macroeconomic indicator Gross Domestic Product (GDP) is the best-recognized measure of economic performance in the world. However, GDP may measure economic growth but does not involve all aspects of sustainable growth or development. In order to effectively measure progress and wealth, clear indicators are needed that incorporate social and environmental costs and benefits. There is no shortage of research on indicators complementary to GDP, but this remains a subject for academic discussions. In order to manage security and sustainability, society has to formulate clear and measurable goals of sustainability. The level, at which these goals are achieved, might be measured using sustainable development indicators. The paper aims to reveal prevailing conceptual approaches of sustainability from the macroeconomic as well as corporation perspectives, to summarize and compare the key factors describing sustainable development. The method of the research is based on logic abstraction that encompasses generalizations and examinations on theoretical approaches and academics’ surveys.
In contemporary economy innovations by the scientists are seen as a driving force of the economic development. Innovation performance is vital to achieve sustainable country’s competition and to stay in pace with other developed economies (Grossmann 2009).
The paper aims to reveal theoretical aspects of innovation activity, to systemize and analyze the key elements of measurement framework and relationship between the innovative activity and patents, research and development (R&D). The study is devoted to describing the conceptual elements of innovation, assessing if prevailing understanding about innovation performance approves theoretical approaches and reviewing innovation tendencies in Lithuania. Obtained results lead to get the general view about the innovation activity development. The research methodology is based on theoretical approaches’ comparative analysis, academics’ survey examination and generalization.