Analysis of Latvian integration processes in EU using system dynamics model
Santrauka
Recent years were significant for the economy of Latvia due to essential changes in structure of
economic system. Often in terns of changed economic conditions traditional statistical and econometric
methods are not appropriate in order to specify main ways of further development. The current paper is
focused on developing of model of economic integration of Latvia in the European Union. The novelty of
the paper is related to the application of system dynamics method and to the study of integration processes
in the European Union. The developed model considers basic elements of international economy and
principles of European Union: free goods and capital movements, migration, contributions and grants;
and, also, evaluates the influence of the Europeau Union on economic development of the country. Results
of the model show both, positive and negative influence of the process of integration on the economic
development of the country. The developed model can be applicable for analysis of economic situation
in other countries of European Union.