Preconditions for Regional Economic Growth at the District Level in Vidzeme, Latvia

Vidzeme is a region in Latvia that is characterized as rural region without a metropolis (the largest city is Valmiera with 24 000 inhabitants), where more than half of inhabitants reside in territories with a low population density. Region's resources in general (people, finance and other) are depleting. Territorially Vidzeme is divided into 25 districts, which are very different in terms of territory and population, as well as economic activity and development. The main purpose of this paper is to investigate, which factors are decisive for a successful growth of the districts.The districts’ economic activity and viability is highly dependent on the size, population and location. Clearly visible is the close relationship between cities and surrounding districts, in particular relationship between Valmiera and its neighbouring territories. The largest districts are in a better position to attract more foreign investment. Retaining the smaller districts mostly seems to be economically unjustified. It is proposed in this study that the cities and surrounding districts would benefit from further integration.