Demographic implications of the recent regional and cohesion policy developments in Latvia

Latvia has been characterised by low GDP per capita relative to the EU average, as well as large territorial disparities, notably between the capital Riga, central part and the rest of the country. Territorial differentiation is mirrored by the main demographic characteristics. Considering the shortage of national funding, national authorities, with the help of Integrated Territorial Investment principle, are channelling cohesion policy funding towards the development needs of weaker regions and specific local municipalities. With this in mind, the aim of the study is to analyse demographic implications in the course of recent regional and cohesion policy initiatives. Study results indicate that the revised regional and cohesion policy approach in 2014-2020 appear to be only partially in agreement with the general population views on the regional demographic challenges. According to the reviewed econometric model results, the cohesion policy activities planned for 2014-2020 period have a potential of bringing limited positive demographic change to the target areas, but fail to account for the possible spatial spillover effects of the investment.