A causative matrix approach for measuring temporal structural changes caused by globalization in Latvian economy

Research background: globalization processes affect the economies mainly with intensified foreign trade flows which have an impact of all industries including also sectors that operate in domestic markets. Identifying structural changes economy is crucial for selection future policy options. Purpose article: objective research estimation Latvian by analyzing sector output over period from 2006 to 2014. Methods: left causative matrix method allows evaluation contributions other and supply within sector. By adding multipliers capture final demand, overall structure can be estimated. After obtaining these indicators, clustered based upon change ratios. Findings & Value added: results show none has performed positively every aspect terms externalization, importance or demand. Manufacture textiles, wearing apparel leather products a single increased externalization sectors, while it’s contribution demand slightly declined. Agriculture fishing along number manufacturing shown ratios respect For internalization, In general, internalization should considered alarming as it points lower competitiveness forming output.