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Getting the most out of trade in Estonia

Author

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  • Zuzana Smidova
  • Naomitsu Yashiro

Abstract

Estonia is highly integrated into the global trade system: it exports approximately 80% of GDP and around half of domestic employment is sustained by foreign demand. Given that international trade and foreign direct investment are considered as major channels of technology diffusion and productivity growth, this bodes well for reviving income convergence. To capitalize on the country’s high trade intensity, policymakers need to remove remaining trade barriers and improve policies fostering knowledge diffusion as well as talent retention and attraction. At the same time, to ensure that benefits of more trade are shared across the population, the social safety net should be bolstered, and participation in upskilling programmes and their labour-market relevance increased. This Working Paper relates to the 2017 OECD Economic Survey of New Zealand (www.oecd.org/eco/surveys/economic-survey-estonia.htm).

Suggested Citation

  • Zuzana Smidova & Naomitsu Yashiro, 2017. "Getting the most out of trade in Estonia," OECD Economics Department Working Papers 1436, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1436-en
    DOI: 10.1787/0b0b99b5-en
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    More about this item

    Keywords

    global value chains; innovation; migration; productivity; social safety net;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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