Structural decomposition analysis of Latvian agrifood sector as integral part of global market

Research background: the Latvian agrifood sector is continuously becoming more integrated in global markets. Imports and exports of agricultural commodities grow every year. At same time, changes output from agriculture food processing are moderate. The main factors that can be used to characterize these sectors employment, gross value added income. causes three could estimated by structural decomposition analysis. Purpose article: objective research percentage over time income economy their source: intensities per unit output, intermediate consumption final demand structure. Methods: traditional methods Input-Output framework, such as multipliers, elasticities, causative matrices enable estimation trends sectors. However, they do not provide share total impact various on economy. Structural analysis estimates relative size within impact. Findings & Value added: results show rather large positive factor both (reverse productivities), turn, negative. less marked. As growth attributed solely increase export demand, this combined with labor productivity drivers employment agriculture. method effectively applied other variables interest for which calculated make sense, carbon emissions, greenhouse gas emissions or energy input.