Impact of energy prices on industrial sector development and export: Lithuania in the context of Baltic States

Abstract

The sustainable development of a country depends on rates of economic growth. Economic growth, in its turn, is related to use of energy in terms its intensity and price. This paper aims to reveal if increasing prices of gas and electricity retard development of industrial sector of Lithuanian economy. A question, if international competitiveness of industry, measured by industrial export, remains unaffected in result of increase of energy resource prices is being raised. Energy intensity issues are not being tackled; during considered period energy intensity did not changed significantly. The object of research is industrial sector of Lithuanian economy. The method used is a correlation analysis, and the time span of data is 2000–2011. An economic interpretation of obtained results would lead to the conclusion that an increase of energy prices has not had significant malign impact on industrial sector development and export.