If industrial sector development is sustainable: Lithuania compared to the EU

Abstract

Discussions about development of economies' structure and impact of economies structures on patterns and rate of economic growth of countries comprise a separate research area in classic field of economics -economic growth economics, and in a reletively newer field of research – comparative economics. If discussion in classic economic growth theories tackled proportions between agriculture industry, later, with rapid industrialization of currently developed countries, discussion its focus gradually swiched. After industrilization reached its saturation in developed countries and percentage of value added generated by agricultural sector diminished, development economists' discussion turned field of efficiency of economic sectors, estimated by total factor productivity (TFP). The paper is devoted to analysis of tendencies of industrial sector development. Admitting that percentage of value added generated in industrial sector diminishes as county develops and value added generated by service sector increases, we claim, that industry does not loose its importance. In oposite, despit servise sector grow and obviously will rapidly develop in observable futire, industry remain the very important consumer of natural, energectical, capital resources and human resources. It is difficult to underestimate industries role in the process of sustainable development of counries development. This paper suggests a sequently devised glance at historical path of industry sector development in Lithuania. Selected indicators of other countries or the EU are used for comparison reasons having a purpose to shed a light on peculiarities – similiarities and differences – of Lithuanian industrial sector development. Insights generated in the result of simple economic comparative analysis of selected counties, we believe, would allow select methodology allowing gradual transforming of Lithuanian industry into more efficient, sustainable and competitive economic sector conditioning the faster economic growth of Lithuania and similar countries, which encounter similar issues and tackle similar economic and politic aims.