The role of forest biotechonomy industry in the macroeconomic development model of the national economy of Latvia: a system dynamics approach

For the purposes of investigation, a causal loop diagram and corresponding system dynamics model of the national economy of Latvia was developed. By introduction of forest biotechonomy in the national economic model, indicative results show that financial resources become more available for education and healthcare. Furthermore, biotechonomy introduction also reinforces further development of high-added value industries and general economic growth via productivity increase and prolonging of total working hours, based on health improvement. This is achieved while proportionally diminishing impact of growth on environment and generally decarbonizing traditional bio-economic sectors.