Last modified: 2019-04-30
Abstract
Purpose – productivity is an economic category that is dependent on many internal and external factors and the assessment and management of these factors positively affects the country‘s economic situation. The aim of this article is to identify the main factors that influence productivity and their relationship.
Research methodology – the methodology of the article give information about the Granger causality test that was applied in order to assess the factors influence on productivity.
Findings – the results of deeper researches of productivity and the assessment of the selected factors have shown that the strongest impact on productivity has the investments and wages.
Research limitations – at this article the following research limitations are applied: amount (due to the analysis of productivity and its determinants it is possible to mention that not all factors that have an influence on productivity are included in the concept of research), time (the data of the 1995-–2017 y.y. are analyzed) and the method (the most appropriate alternative for the analysis is the use of the Granger causality test).
Practical implications – the improvement of the country‘s economic situation is possible due to the targeted management of the factors, that have the greatest impact on productivity;
Originality/Value – new variables are included in the analysis of productivity and factors that have an influence on it and the evaluation of these factors is carried out in the case of Baltic States.