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Economic Integration and Regional Specialisation Development in Estonia

Author

Listed:
  • Grigory Fainstein

    (Department of Economics, Tallinn University of Technology)

  • Natalja Lubenets

    (Department of Economics, Tallinn University of Technology)

Abstract

In the present paper regional specialisation and regional income dynamics in Estonia during 1993-2000 in the context of trade liberalization and integration with EU have been analysed. A set of specialisation indices are calculated to study regional industrial dynamics. Absolute regional specialisation is measured by Herfindahl index. Relative regional specialisation is measured by Dissimilarity index and Gini coefficient. The indices are based on data for employment in manufacturing industries classified by two-digit NACE standard. Rest of the paper discussed some estimation results for the model where regional growth is regressed on the specialisation measure and a group of regional indicators. Econometric analysis of impact of specialisation on economic growth revealed strong direct relationship between these two variables on regional level. Regional growth is also positively influenced by indicators of regional industrial development and improvement in infrastructure.

Suggested Citation

  • Grigory Fainstein & Natalja Lubenets, 2004. "Economic Integration and Regional Specialisation Development in Estonia," Working Papers 106, Tallinn School of Economics and Business Administration, Tallinn University of Technology.
    • Handle: RePEc:ttu:wpaper:106
    Note: This research was supported by the ECís Phare ACE Programme 1998 (Project P98 -1117 R) and Estonian Science Foundation (Project 5084).
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    References listed on IDEAS

    as
    1. Martin Hallet, 1998. "The regional impact of the single currency," ERSA conference papers ersa98p27, European Regional Science Association.
    2. Amiti, Mary, 1998. "New Trade Theories and Industrial Location in the EU: A Survey of Evidence," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 45-53, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    trade liberalization; economic integration; regional specialisation; regional growth;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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