US Direct Investments in Latvia under Sustainability Perspective

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US Direct Investments in Latvia under Sustainability Perspective

ABSTRACT: The purpose of this paper is to disclose the process and structure of US direct investment in Latvia as sustainability driver. Both qualitative (literature review, personal observations, interviews) and quantitative (time series, structure analysis, case study) methods of research are applied. The linear trend and standard deviation are used to FDI indicators for the whole period of re-gained statehood and two sub-periods of before and after Latvia joined the EU. Industrial structure by NACE codes is analyzed. It is found that US direct investments in Latvia embody market management approaches making use of sustainability opportunities. Contradictory events take place. Indicators of the dynamics and structure may change their course. Political considerations do not collide with the investment flow. Relevance of the sustainability problematic in the long run is proven against the routine of management. Research limitations: Covid crisis is not included, cases need time to flourish, no questionnaire, bank of interviews instead. Practical implications are the recommended changes to FDI practice in favour of merging digitization with sustainability on the part of management. Profile of recipient of US investor in Latvia proposed on yearly basis. It will positively impact progress in the socio-economic sphere and accelerate structural changes. Contradictions are to be monitored and solved ad hoc. Original is study of FDI as sustainability driver, attracting its dynamics and structure under business management practice. Conclusions and charts can be introduced in the scientific circulation and used in mobilizing managers as well as raising sustainability awareness among entrepreneurs in Latvia and abroad.

KEYWORDS – business management, foreign direct investment, Latvia, NACE Code, sustainability, USA.

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