Open AccessCharacteristics of the Factors Affecting the Performance of the Global Business Services Sector in Latvia
Author(s) -
Edite Zile,
Lāsma Līcīte
Publication year - 2021
Publication title -
proceedings of the international scientific conference "economic science for rural development"/economic science for rural development
Language(s) - English
Resource type - Conference proceedings
eISSN - 1691-3086
pISSN - 1691-3078
DOI - 10.22616/esrd.2021.55.041
Subject(s) - tertiary sector of the economy , business , business sector , industrialization of services business model , service (business) , economic sector , electronic business , economy , business model , marketing , economics , business relationship management
In Latvia, the global business services sector accounts for 2.3 % of GDP, and its share in total service exports is 8 %, while the turnover of the sector in 2019 was estimated at EUR 400 mln., which indicates that the global business services sector in Latvia is an important component of the national economy. The global business services sector in Latvia has developed relatively recently, so it has not yet been sufficiently assessed and researched. The aim of the research is to describe the factors affecting the development of the global business services sector in Latvia. The research concluded that the global business services sector in Latvia was promoted by such factors as the availability of labour and low labour costs, as well as a relatively favourable business environment. The potential of the global business services sector in Latvia is also characterized by its advantageous geographical location, especially from the perspective of Scandinavian investors (including in terms of cultural similarities), as well as the foreign language skills of potential employees. The establishment of the Association of Business Service Leaders in Latvia (ABSL Latvia) (the only such an association in the Baltic States that defends the interests of this sector) is also an important driver for the development of the sector.