The Productivity Paradox and Qualified Workforce Deficit in Latvia's ICT Sector: A Theoretical and Empirical Diagnosis

Latvia's Information and Communication Technology (ICT) sector faces a dual challenge: a persistent productivity paradox, lagging the EU average, and a critical shortage of a qualified workforce. This lack of skilled labour reinforces the emigration of top professionals, creating a significant barrier to innovation and competitiveness. This paper provides a foundational theoretical framework and an empirical diagnosis of this interconnected problem. Using a bibliographic research method, it synthesizes theories of endogenous growth and intellectual capital mobility to model a negative feedback loop where low productivity, and the deficit of a skilled workforce reinforce each other. The findings offer an evidence-based diagnosis of the structural barriers, establishing the critical link between productivity and the dynamics of the qualified workforce.