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A Global Baltic:Potential Gains from Trade Liberalisation in the Baltic Sea States

Author

Listed:
  • Susanna Kinnman

    (Economist at the Swedish National Board of Trade)

  • Magnus Lodefalk

    (Economist at the Swedish National Board of Trade)

Abstract

Though the Baltic Sea countries have displayed substantial reform-facilitated growth and trading activity over the last decade, significant trade barriers still exist. We analyse their implications, using a CGEmodel. Besides the “usual suspects” (tariffs, subsidies, and service barriers) and trade facilitation, we address non-tariff-measures (NTM) in a separate scenario. We find that reforms would substantially boost national income and trade, especially for the group of emerging economies. Income gains are primarily due to elimination of dead-weight losses caused by rules and regulations and improved resource allocation. Jointly, the simulations indicate a move towards services and industrial production and exports.

Suggested Citation

  • Susanna Kinnman & Magnus Lodefalk, 2009. "A Global Baltic:Potential Gains from Trade Liberalisation in the Baltic Sea States," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(1), pages 55-79, July.
    • Handle: RePEc:bic:journl:v:9:y:2009:i:1:p:55-79
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    References listed on IDEAS

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    More about this item

    Keywords

    trade liberalisation; CGE; trade facilitation; services; NTM; NTB; Baltic Sea;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F2 - International Economics - - International Factor Movements and International Business
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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