OECD recommendations

More inclusive, stronger productivity growth is essential for faster income convergence to advanced OECD economies. Increasing the supply of affordable quality housing where employment expands facilitates labour mobility and allows low income workers to find good jobs. Access to healthcare services and to vocational and higher education need to improve further to boost human capital. Stronger research cooperation between firms and research institutions and a more effective insolvency regime would enhance innovation and resource allocation.

  • Improve legal certainty in rental regulation and encourage out-of-court procedures. Provide more funding for low-cost rented housing in areas of expanding employment.
  • Reduce out-of-pocket payments in healthcare especially for the low income population.
  • Provide more generous grants for vocational school students from low-income families. Expand grants for university students and target them to students from low-income families.
  • Increase government funding of innovation support programmes with strong evaluation results.
  • Strengthen the specialisation of judges in areas such as the insolvency regime.



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Productivity - Latvia

Source: OECD May 2017 Economic Outlook database

 Key publications

Smidova,Z.  (2015), "Policy areas for increasing productivity in Latvia economics", OECD Economics Department Working Papers, No. 1255, OECD Publishing, Paris.

Stockholm School of Economics in Riga (2013), Latvia Competitiveness Report.

Fadejeva, L. and A. Melihovs (2009), “Measuring Total Factor Productivity and Variable Factor Utilisation: Sector Approach, the Case of Latvia”, Bank of Latvia Working Paper, No.3, 40p.

Institutions icon Productivity - enhancing institutions

Ministry of Economics of the Republic of Latvia

The Ministry of Economics has a leading role in formulating economic policy. An important objective is to raise the competitiveness of the Latvian economy. The Ministry analyses economic developments, structural policy priorities as well as short and long-term perspectives.

Investment and Development Agency of Latvia.

The objective of the Investment and Development Agency of Latvia (LIAA) is to promote business development by facilitating foreign investment and increasing competitiveness of Latvian entrepreneurs.


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