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Baltic Trade with Europe: Back to the Roots?

Author

Listed:
  • Claus-Friedrich Laaser

    (Kiel Institute for World Economics)

  • Klaus Schrader

    (Kiel Institute for World Economics)

Abstract

The statistical analysis of Baltic trade flows and gravity estimates reveal that Estonia, Latvia and Lithuania have rapidly integrated into the international division of labour with a distinct EU focus. The three Baltic States have taken a road towards the EU common market which pays particular attention to close trade relations with their direct neighbours on the Baltic Rim. The Baltic Sea obviously serves as a major integrating device for these countries, although each of them has developed relations with different regional foci. At the same time Estonia, Latvia, and Lithuania, although being no longer integrated into the former intra-Soviet division of labour, have not abandoned their contacts to the Soviet successor states altogether. From a sectoral perspective, Baltic exports are dominated by “traditional” labour-intensive goods. However, this common feature is embedded in heterogeneous patterns of trade specialization, ranging from Estonia's exports with higher technological content to Lithuanian raw-material-intensive exports.

Suggested Citation

  • Claus-Friedrich Laaser & Klaus Schrader, 2005. "Baltic Trade with Europe: Back to the Roots?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 5(2), pages 15-37, July.
    • Handle: RePEc:bic:journl:v:5:y:2005:i:2:p:15-37
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2005.10840421
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    References listed on IDEAS

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    Cited by:

    1. Schrader, Klaus & Laaser, Claus-Friedrich, 2010. "Tiger oder Bettvorleger? Die baltischen Staaten nach der Krise," Kiel Discussion Papers 485, Kiel Institute for the World Economy (IfW Kiel).
    2. Laaser, Claus-Friedrich, 2010. "Nutzerabhängige Verkehrsfinanzierung und räumliche Arbeitsteilung: Globale und raumwirtschaftliche Aspekte," Open Access Publications from Kiel Institute for the World Economy 59901, Kiel Institute for the World Economy (IfW Kiel).
    3. Talis J. Putninš, 2013. "Exporting by Latvian companies: vitality, drivers of success, and challenges," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 3-33, December.
    4. Laaser, Claus-Friedrich, 2010. "Nutzerabhängige Verkehrsfinanzierung und räumliche Arbeitsteilung: Globale und raumwirtschaftliche Aspekte," Forschungs- und Sitzungsberichte der ARL: Aufsätze, in: Hesse, Markus (ed.), Neue Rahmenbedingungen, Herausforderungen und Strategien für die großräumige Verkehrsentwicklung, volume 127, pages 100-114, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.

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    More about this item

    Keywords

    Baltic trade patterns; Eastern enlargement; regional integration; gravity model; specialization patterns;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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