Generolo Jono Žemaičio Lietuvos karo akademija

The discussion about the impact of financial development on economic growth is still relevant for economists. However, in recent years, after the financial crises of the first decade of the 21st century, there has arisen certain scepticism about the positive impact of the growing financial sector on economic growth rates. Moreover, specific cases of negative consequences of such a connection or its absence have become known. The 2008-2010 crises, certainly, played an important role in rethinking the nature of the impact of the financial sector on the real sector in the economy, which led to new arguments in favour of a relatively more cautious approach to stimulating the financial sector, given the potential negative effects on the country’s socio-economic security. The aim of the research is to determine the nature of the relationship between financial development and economic growth and its direction in Latvia in the period 1995–2017.

The article considers the digital economy as the main factor in the development of small and medium-sized businesses. The programs of the digital economy of various foreign countries were explained. Methods of effective development of the digital economy are studied. The importance of the digital economy in modernizing traditional industries and services is emphasized. Mixed financial transactions have organized by continuous penetration of information in technologies and its role in the development of small and medium-sized businesses have described. In Kazakhstan, the problems of introduction and dissemination of the digital economy in the sphere of small and medium-sized innovative entrepreneurship are discussed: the lack of infrastructure to promote domestic developments, underestimation of innovative activity by domestic entrepreneurs. The digital economy characterized as one of the manifestations of scientific and technological development of Kazakhstan. It provides for a significant favorable impact of digitalization on the development of small and medium-sized innovative entrepreneurship in Kazakhstan. In the digital economy, the main attention paid to one of the most important conditions for the effective development of the leading branches of human activity - the formation of an appropriate institutional environment. The main institutions, personnel and conditions for the use of knowledge for the successful development of the digital economy outlined

Our paper focuses on the issues of food security and agricultural trade. Specifically, we tackle the issue of economic selfsufficiency of a country using an example of the import ban on agricultural production as one form of economic sanctions. Our paper attempts to estimate the impact of sanctions in separate regions, rather then on the aggregate country level. We propose an original methodology of estimating allocation of import ban effects based on the OECD Customer Support Estimate (CSE). Our results demonstrate that in case of some agricultural products (e.g. potatoes) consumers in most of Russian regions were net beneficiaries before 2014, but the magnitude of the benefits decreased significantly after the introduction of sanctions. This provided Russian agricultural producers with more support arising from the market price differential. All in all, we find no significant evidence of the import ban impact, however after 2014 the cumulative cost paid by consumers in different regions declined significantly due to other factors, leaving consumers in the position of net beneficiaries. Our results demonstrate that despite the economic sanctions are important, they do not affect food security of neither of conflicting parties.

Our paper focuses on the threats to the global development and sustainable economic development of a country that might include economic, political, human development, as well as sustainable development issues and problems. Sustainable economic development might serve as a tool for fostering the country’s prosperity and helping it to overcome various threats that might stem from its geolocation, economic situation, natural resources, as well as many other internal and external factors that all play their decisive roles. The paper uses a case study of the United States as an example of the country vulnerable to a plethora of threats. It analyzes the most crucial threats one by one and classifies the most notorious and impending issues stemming from these threats that might hamper the economic growth and development. In particular, we focus on the issue of energy security and the renewable energy sources (RES) that represent an important aspect in this debate and research. Our results can be used by the policymakers as well as regional development managers for improving the security strategy.

With regard to its territorial size, economy and political power; Germany represents one of the most sustainable, competitive and economically developed Member States of the European Union. However, development of the knowledge-based economy on one hand and negative demographic trends on the other hand will force Germany to cover the growing demand for high-skilled labour force from non-EU countries in the coming years to keep this position. The paper analyses competitiveness within the framework of security and sustainability of the Federal Republic of Germany concerning labour migration from the third countries. Main research question of this article is formulated as follows: How can migration from the third countries influence economic development and competitiveness of Germany in terms of state’s demographic problems? With regard to the above, we try to verify our hypothesis claiming that compensation of the domestic workforce through regulated migration flows – necessary because of declining and aging population and skill disharmony in Germany – is only a short-time solution of the current situation on the German labour market, but it is not sustainable in the long run.

The article describes the research of the development of the shadow economy, defines its essence, discloses main reasons for its occurrence; describes its structure, Identifies factors that promote its development; evaluates the system of combating measures and reveals the results of controlling it. Policy implications are being suggested.

Economic growth and income differentiation problems are the most actual problems of modern research. The research is attributed to sustainable development research area. In a case of Latvian economy these problems have a huge actuality because of lack of researching works, where these parts of science are completely opened. Special interest causes question about the trajectory of economic growth and and uneven income. If GDP growth is connected with increasing income differentiation of population, then increasing income differentiation absorbs part of the effect on the growth of aggregate income. If GDP growth is on the background of lower income differentiation, the increase in total income is supplemented by regularity of revenue growth. Thus the social effect of economic growth increases significantly. What trends are taking place in income differentiation by regions and economic development of the regions in Latvia after the EU accession? What trends are taking place in interregional differentiation in income per household member, and in GDP? Is there a relationship between trajectories of economic growth and income differentiation in the regions of Latvia?