Tatjana Staube

Feasible industrial location in Latvia: empirical analysis performance for the multinational enterprises

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Abstract

The research is drawn on the main hypothesis that Latvia does not use its advantageous location effectively supported by the previous research results published in the book “Climate change and adaptation to it: Latvia”. The author found the modern industrial real property market stock would not need any further growth and pointed on the local industrial real estate market misbalance. Subject of the research is the leading industrial multinational enterprises from the Baltic Sea Region working in Latvia. A focus of the research is on finding out the key principles in those companies’ choice on the most appropriate territory to the industrial real estate needs and specifics of the industrial location. The survey was conducted in Latvia last year. The Paper contains the questionnaire with the projected results, the analysis of other scientists’ work results on the industrial location research and the model introduced. The developed model is devoted to forecast stock of the modern industrial premises in Europe in the territory of the Republic of Latvia by the original approach of including the European climate change issue as a basis to assign the sustainable supply of the industrial premises, applying complex of the methods like logical approach and comparison, the system and dynamic row's analyses. The author expects that a climate change issue so far is not strictly regulated in Latvia and industrial business units do not measure it as the alternative or threat to further expansion. Here, the introduced algorithm model of the forecasting a supply of the spatial economic objects would show a new way of planning the industrial business scales analyzing the existing European practices and capacities. The Paper is a message to professional critical view and assessment on the model, the questionnaire and the preliminary results.

Keywords: climate change; feasible location; industry location; survey; locational strategy; market attractiveness assessment; multinational enterprises.