Course code Ekon5092

Credit points 3

Regional Economy and Policy

Total Hours in Course81

Number of hours for lectures12

Number of hours for seminars and practical classes12

Independent study hours57

Date of course confirmation29.10.2018

Responsible UnitInstitute of Economics and Finance

Course developer

author prof.

Modrīte Pelše

Dr. oec.

Course abstract

The course provides students with an understanding of the role of regional policy in territorial growth. In determining the composition of a regional economy, it is important to assess not only the economic development potential and the opportunities for growth but also the specifics and particularities of the territory, which can serve as a resource of growth for the particular territory.
The course also focuses on the roles of the European Union and the national and local governments in developing regional economies. The course gives insight into the regional policy, its key principles and the latest developments. The course allows students to comprehend the economic role of local resources in the development of regions and the country as well as gives an opportunity to assess the performance indicators.

Learning outcomes and their assessment

Students will be able to demonstrate:
1.Knowledge of the regional policy framework in the European Union. Discussion, Test 1;
2. An in-depth knowledge of the composition of a regional economy and resources for regional development. Study, a presentation.
3. A structured knowledge of sustainable development planning, development centres and support instruments. Group work, discussions, Test 2.
1. Independently analyse and assess resources for development in an administrative territory based on the acquired knowledge of theory and methodology. Individual independent work, a survey, the presentation.
2. Reasonably explain regularities in regional development, including the role of reginal policy, at the micro/macro level and at the global/regional level. Individual independent work, use of information technologies, debates.
3. Responsibly plan own time and resources for the completion of the assignments given. Practical assignments.
4. Engage in and assume responsibility for the group’s work and their own individual contribution to it. Group/pair work, discussions.
1. Independently formulate and critically analyse complicated regional policy and economic problems. Presentation, discussions in classes.

2. Substantiate their own conclusions and make proposals for solving problems by integrating the institutional framework with various other frameworks at the national and international levels. Presentation, discussions in classes.

Course Content(Calendar)

1. Course Regional Economics and Policy. The substance, goals and tasks of the course (1 h – lecture)
2. Territory and the division of it. The regional division in the EU and Latvia. Eurostat’s NUTS Classification of territorial units for statistics. Interaction of rural and urban areas (1 h – lecture; 1 h – practical)
3. Regional policy in the EU. Change in the regional policy paradigm. The regional policy implemented by the EU, the goals of it. Principles and priorities of the EU regional policy (1 h – lecture; 1 h – practical)
4. Institutional framework for regional policy. The EU administrative mechanism, the key institutions (1 h – lecture)
5. Local governments, their role in territorial development. Functions, rights and responsibilities of local governments. Indicators of development, infrastructures and trends in economic activity policy (1 h – lecture; 3 h – practicals)
6. Administrative and territorial reform (1 h – lecture; 1 h – practical)
7. Indicators of territorial development, the territorial development index. The Regional Development Indicator Module (RDIM) (1 h – lecture; 5 h – practicals)
8. Funding for regional development at the national level. The local government equalisation system in Latvia (1 h – lecture)
9. EU financial instruments. The EU budget, the principles of budgeting. EU regional policy instruments, the EU Funds (1 h – lecture; 1 h – practical)
10. Monocentric and polycentric territorial development. Decentralised and polycentric development. Reginal policy relevance - polycentric territorial development (1 h – lecture)
11. Regional development strategy and planning. Territorial planning levels, the hierarchy. Tasks of territorial planning. Public involvement in territorial planning (1 h – lecture)

12. Public and private partnership in regional development. Public involvement in tackling urgent problems (1 h – lecture)

Requirements for awarding credit points

The student has to pass two tests on the topics of the course and make a presentation of socio-economic indicators of a territory and assess the potential for development in the territory, as well as complete and submit independent assignments.

Description of the organization and tasks of students’ independent work

The student has to complete and submit two independent assignments before the deadline. One of them is smaller in size and deals with an urgent regional development problem and solutions to it, while the second one pertains to examining and assessing the potential for development in a particular territory (PowerPoint presentation – 2025 slides); the best presentations are presented in practicals

Criteria for Evaluating Learning Outcomes

The final mark consists of the following pieces of assessment: Test 1 (30%), the presentation of the independent assignment (30%), Test 2 (30%) and activity during practicals and the completion of the assignments given (10%). 10% are equal to one point on a 10-point marking scale.

Compulsory reading

1. Capello R. Regional Economics 2nd Revised edition. New York : Routledge, 2016. 354 lpp.
2. McCann P. Modern urban and regional economics second edition Oxford : Oxford University Press, 2013. 408 lpp. ISBN 978-0-19-958200-6.

3. Vaidere, I., Vanags, E., Vanags, I., Vilka, I. Reģionālā politika un pašvaldību attīstība Eiropas Savienībā un Latvijā. Rīga: Latvijas Universitātes Akadēmiskais apgāds, Latvijas Statistikas institūts, 2006. 295 lpp.

Further reading

1. Latvijas ilgtspējīgas attīstības stratēģija līdz 2030. gadam. (2010) pieejams [tiešsaiste]:
2. Latvijas Nacionālais attīstības plāns 2014 – 2020 (2012). Pieejams:
3. Capello R., Camagni R.P., Chizzolini B., Fratesi U., (2008) Modelling Regional Scenarios for Enlarged Europe. p. 321.

4. Pūķis M. Pašu valdība. Latvijas pašvaldību pieredze, idejas un nākotnes redzējums. Rīga: Latvijas Pašvaldību savienība, 2010, 512 lpp.

5. Rivža B., Zvirbule A., Grīnberga-Zālīte G., Pelše M., Jermolajeva E., Krūzmētra M., Rivža P., Štefenberga D., Gudele I., Ābele L., Hohlova V. (2022) Latvijas spēks ilgi pastāvēt. Jelgava: SIA Jelgavas Tipogrāfija. 479 lpp.

Periodicals and other sources

1. Eiropas Parlaments. Pieejams:;
2. Eiropas Savienības fondi.
3. Eiropas Savienības oficiālā mājaslapa.
4. Latvijas Republikas tiesību akti.
5. Reģionālās attīstības indikatoru modulis.

6. Vides aizsardzības un reģionālās attīstības ministrija Pieejams:


Compulsory course for the ESAF academic master programme Economics