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The article seeks to contribute to a better understanding of older people's situation in the labour market in three Baltic countries – Estonia, Latvia and Lithuania. Three Nordic countries are taken as a reference point to compare the countries in order to better understand the situation from a comparative point of view. The article asks the questions: Does a longer working life for older people contribute to their better economic situation? How satisfied are they with a longer working life and their working conditions? Do they experience any discrimination in the labour market because of their age?

In order to understand the situation of older people in the labour market, the authors employ welfare state models and the Active Ageing Index. The welfare state models help us to understand the context in which the working life of older people is taking place. The Active Ageing Index helps to gain a better understanding of the employment domain of active ageing. The analysis is based on several Europe-wide data sources: statistics on earnings from Eurostat database, information on income, job prospects, occupational safety and health, training, working life perspectives from the European Working Conditions Survey as well as a special survey, conducted by the authors, of Lithuanian, Latvian and Estonian residents aged 50 years and older.

Analysis conducted reveals that in the Baltic countries older employees, although actively participating in the labour market, face unfavourable material, physical and psychological situation in the labour market more frequently than their younger colleagues. The findings show that the most important factors influencing older employees' decision to stay longer in the labour market in the Baltic countries are linked mostly to welfare state-related issues, i.e. financial benefits, healthcare, possibility to reconcile work and family obligations. These welfare state-related issues are even more important for those who are going to stay longer in the labour market after reaching the retirement age.

This article contributes to a better understanding of older (50+) people's situation in the labour market. It suggests that, while the increasing employment of older people increases the Active Ageing Index and is generally viewed positively, in some countries with less developed welfare states high employment rates of older employees, although providing them with an additional means of livelihood, do not ensure a higher quality of life and, on the contrary, act as a factor reducing the quality of work and, at the same time, the quality of life.

The purpose of this paper is to analyse investment strategies and performance of Finnish firms in their international joint ventures (IJVs) established in Baltic States.

The paper analyse performance of IJVs in Baltic States based on the IJV theory, international business literature, and foreign direct investments in Central and Eastern Europe (CEE) literature. The analysed factors include firm, investment, and inter-partner relationship-specific factors. To examine the propositions the paper used ten IJVs established by Finnish firms in various Baltic States between the period 1991 and 2005.

The results show that the level of uncertainties in the countries and the differences between partners are not related to firms’ commitments and the entry mode choice. Several Finnish firms preferred cost leadership to compete with other firms in the local markets. In most cases there was a positive relationship between the level of partners’ equity share, commitment to the IJV, and the level of trust between partners. The results indicated differences in the IJV performance depending on parent firms’ objectives, their competitive strategies, mode of entry, age of IJVs, control strategies, level of trust, and commitment between partners, as well as depending on the performance measures used.

This study suggests four observations that managers may need to take into consideration to improve IJV performance in the Baltic States. First, cost leadership strategy help to increase IJV performance in terms of sales. Second, social control mechanisms and narrow control leaded to better performance than formal and wide control. Third, minority ownership by Finnish firms in IJVs leaded to better performance based on sales, productivity and total performance whereas majority ownership had leaded to better performance in terms of total costs. Finally, the results confirmed that commitment to the IJV operation and trust on the other partner are very essential factors to IJV performance.

The study is the first one to analyse in more detail based on several cases the IJV strategies and performance of Finnish firms in the Baltic States. The analysed factors include several such factors which have not been analysed related to IJV operations in Baltic States (some also limitedly in the CEE context).

This paper aims to use the user costs approach to identify the periods of over- and under-valuation in the Baltic residential real estate markets.

Three alternative estimates of the user costs of homeownership in the Baltics are computed: one that does not discriminate between the leveraged and unleveraged parts of a house and the other that takes loan-to-value ratios into account.

The approach successfully identifies the overheating that took place in the Baltic real estate markets prior to the crisis of 2009 and shows that there is significant upward pressure for the housing prices in the Baltics in the low interest rate environment that became prevalent ever since.

The paper uses only the current values of the fundamentals to compute the user costs. The framework could be augmented to account for the expected future developments of the fundamentals.

The macroprudential policy makers should monitor the developments in the Baltic residential real estate markets closely and be ready to act because an increase in the price-to-rent ratios might seem sustainable, given the current low interest rates, but could potentially bring harmful volatility when the monetary policy normalises.

This paper builds a novel data set on the real estate markets of the Baltic countries and is the first to derive the user costs of homeownership in the region. It is also among the first to identify periods of housing price misalignments from their fundamental values in the Baltic States.

One of the most important transitions going on in the newly independent nations of the former Soviet Union involves training managers and their associates who are working to establish a free market‐based economy within a pluralistic democratic setting. This article highlights the problems and prospects of this transformation, using the Baltic states as an example. Its purpose is twofold. It presents insight for those who want to understand the changes better. It supports the efforts of those who plan and implement managerial development programs in these settings.

For decades, it was emphasized that manufacturing and trading companies should aim to be lean with very small inventories. However, in the recent decade, time-significant change has taken place as nearly all of the “old west” countries have now low interest rates. Holding inventories have been beneficial for the sake of customer service and for achieving savings in transportation and fixed ordering costs.

In this study, inventory management change is examined in publicly traded manufacturing and trade companies of Finland and three Baltic states (Estonia, Latvia and Lithuania) during the years 2010–2018.

Inventory efficiency has been leveled off or falling in these countries and mostly declining development has concerned small- and medium-sized enterprises (SMEs). It is also found that inventory efficiency is in general lower in SMEs than in larger companies. Two companies sustaining in inventory efficiency are used as an example that lean has still significance, and higher inventories as well as lower inventory efficiency should not be the objective. Two companies show exemplary financial performance as well as shareholder value creation.

Work concerns only four smaller countries, and this limits its generalization power. Research is one illustration what happens to private sector companies under low interest rate policies.

Continuous improvement of inventory efficiency becomes questionable in the light of current research and the low interest rate environment.

This is one of the seminal studies from inventory efficiency as the global financial crisis taken place in 2008–2009 and there is the implementation of low interest rates.

Provides an overview of the article collection in this theme issue that explores the concept of “smart tourism” and in particular, developments and issues that are important for the Baltic States.

The article applies a thematic approach to exploring the factors affecting the development of smart tourism, as well as the challenges and opportunities facing the Baltic region. Overall, the collection reviews the literature, provides an analysis of data and a survey of experts, including tourism service providers. This combines with the practical solutions given in the articles.

The findings and conclusions of this theme issue focus on the factors affecting the development of smart tourism and smart villages, digitalization and innovation opportunities in the Baltic regions, and it provides an insight on the current situation in the smart tourism industry, the possibilities for using digital technologies, and the practical applications.

This theme issue explores the factors influencing and challenges facing smart tourism in the Baltic region, given that all the stakeholders actively want more sustainable and balanced tourism, as well as opportunities to develop innovative, technologically advanced solutions to the development of smart tourism.

This paper aims to describe some trends on climate change in the Baltic Sea region, along with current and future expected actions to cope with climate change in the region.

The elements that influence climate change in the Baltic Region countries are analysed and co‐operation efforts among the Baltic countries as well as their individual policy and political decisions considering this issue are described.

Climate change is one the biggest problems faced today and a major threat to society. There is a need for political measures as well as a change in socio‐economic trends in order to meet the challenges of climate change in the Baltic Sea Region.

Climate change is a matter of common concern in the 11 Northern European countries, which either are on the Baltic Sea coast or are influenced by the Baltic Sea by being in the catchment area. The importance of international co‐operation is outlined and some recommendations and possible solutions are provided.

This study aims to provide a summary of the key outcomes and reflections related to the theme issue question, “Smart tourism: what developments and issues are important to the Baltic states?”

This study utilizes a descriptive approach to summarize the key outcomes of the theme issue. The theme issue focuses on the problems, trends and developments of smart tourism in the Baltic states, namely, Latvia, Lithuania and Estonia.

The papers in the theme issue explore the emerging concept of smart tourism and the challenges associated with its implementation at the destination level. They also provide updated data on the adoption of smart tourism and aim to engage academics and industry professionals to identify future developments.

This theme issue provides unique perspectives from a variety of stakeholders, including academics, practitioners, industry professionals and policymakers on the key issues, trends and developments shaping the emergence of smart tourism in the Baltic states.

The purpose of this paper is to examine whether the banking crisis in the USA and Western Europe that began in August 2007 precipitated a change in the relationship between the currencies of the Baltic States and the Euro, such that it could be described as shift contagion. The paper also considers whether the “hardness” of the currency peg affects the market reaction to that crisis.

Shift contagion is said to be revealed if there a change in the co‐movements of exchange rates after August 2007 compared with before. Change is revealed by coherence and phase shifts. Both are drawn from cross‐spectral analysis.

Rather than weaken, the bonds between the currency board‐managed Kroon and the Litas, in a similar way to the Lat, exhibited greater bonding after the banking crisis began compared with before. The phase angles suggest some shift in money flows between the Baltic currencies and the Euro. With the Lat, the delays appear to be the same but at longer periodicies. The other two appear be subject to a reversal of money flows at various periodicies.

Spectral analysis reveals that bonding between currencies of ERMII countries and the Euro increased, but the structure of money flows changed as a result of the Western banking crisis in related geographical and financial markets, before a local crisis became evident. To what extent this is an improvement over correlation methods could be the basis of further research. The phase switch is a structural change that other techniques could not have revealed.

The paper shows that spectral analysis could be more widely used in financial economics to reveal the impact of events on term structures.

The purpose of this paper is to evaluate and compare performances of three Nordic (Sweden, Denmark, Finland) and three Baltic (Lithuania, Latvia, Estonia) exchanges.

Portfolio performance is estimated using two different approaches: traditional measures – Sharpe, Sortino and Treynor ratios; and alternative measures – reward to value‐at‐risk and reward to expected tail loss (RETL).

The findings highlight the differences and similarities in Nordic and Baltic stock exchanges and their performance trends after creation of common marketplace OMX. Returns of Baltic, like Nordic, exchanges are normally distributed. During the period of 2000‐2006, Baltic exchanges outperformed Nordic exchanges.

The research is limited to six stock exchanges that are members of common marketplace OMX. Proposed alternative performance measures did not diverge from traditional approaches, because, apparently, Baltic exchanges offer normally distributed returns and should not be considered emerging markets. These measures should be further tested in developing and emerging markets.

The findings have both theoretical and practical implications. To the authors' best knowledge, it is the first public attempt to estimate performance of Baltic and Nordic exchanges in the context of modern portfolio theory and, alternatively, new science of risk management (value at risk and expected tail loss). The paper argues for the usage of an alternative measure for performance valuation – RETL. Furthermore, the paper discuses merits and limitations of different approaches to risk and performance measurement.