Abstract
Abstract The transport infrastructure and state-owned enterprises (SOEs) have a significant effect on competitiveness of transport industry, and indirectly determine the business environment in related sectors. In Latvia, all transport related state strategies and policies are developed, controlled and overviewed by the Ministry of Transport. Eleven companies are engaged in commercial/non-commercial activities, and evaluated whether the liberalization of certain activities would provide efficiency among SOEs in the transport industry of Latvia, given the sectoral weight and share of State involvement and control of the industry. There is limited and contradictory debate to what extent the Latvian state should involve in business activities of transport industry, and how to balance the multiple interests and targets of business, society and politics. The present research is based on the scientific papers, official documents of the World Bank and OECD (Organisation of Economic Cooperation and Development), company websites and annual reports.
Highlights
The EU main challenges in the transport industry are sustainable, integrated and appropriate quality and cost of transport infrastructure and services
There is limited and contradictory debate to what extent the Latvian state should involve in business activities of transport industry, and how to balance the multiple interests and targets of business, society and politics
More than 6 % of total dependent employment is in state-owned enterprises, which would rank Latvia just after Norway, France and Slovenia, which are the OECD countries with the highest shares of employment in public companies
Summary
The EU main challenges in the transport industry are sustainable, integrated and appropriate quality and cost of transport infrastructure and services. Contrary views are present; a review of corporatisation “after two decades of experimentation” O’Flynn (2007) is perhaps timely to understand the environment and context in which SOEs operate, examine the financial and economic returns, and consider the potential for entrepreneurial and strategic activity in the public sector context of SOEs. According the data of International Labour Organisation (ILO), Latvia has one of the leading positions of public sector employment – 32 % against the OECD average of 22 %, which is explained by the level of state control of transport industry in Latvia. Research by the World Bank indicates that a combined programme of privatisation and corporatisation (i.e., incorporating government departments with a commercial focus such that they become separate legal entities such as state-owned enterprises) is the most effective approach in managing the public sector (Shirley, 1999). The share and weight in the industry, as well as industry composition and regulatory control are just some aspects to discover in this paper
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
