IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/1088.html
   My bibliography  Save this paper

European integration and changing trade patterns: the case of the Baltic states

Author

Listed:
  • Laaser, Claus-Friedrich
  • Schrader, Klaus

Abstract

The analysis of Baltic regional trade patterns reveals that during the nineties the Baltic states made significant progress to integrate into the Western European division of labour although a significant share of (transit) trade with Russia remained. In view of this development, history seems to matter with respect to the interwar period and the period of Soviet occupation. In addition, a trade entropy analysis and gravity model estimates show that European integration of the Baltic states has a regional centre of gravity located in the Baltic Sea region. The Baltic trade flows increasingly follow the gravitational forces that generally shape trade relations, while regional integration is still much more important than it is normally the case.

Suggested Citation

  • Laaser, Claus-Friedrich & Schrader, Klaus, 2002. "European integration and changing trade patterns: the case of the Baltic states," Kiel Working Papers 1088, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1088
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/2690/1/kap1088.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jan Fidrmuc & Jarko Fidrmuc, 2003. "Disintegration and Trade," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 811-829, November.
    2. Tamim Bayoumi & Barry Eichengreen, 1997. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," NBER Chapters, in: Regionalism versus Multilateral Trade Arrangements, pages 141-168, National Bureau of Economic Research, Inc.
    3. Alan V. Deardorff, 2011. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 24, pages 267-293, World Scientific Publishing Co. Pte. Ltd..
    4. Soloaga, Isidro & Alan Wintersb, L., 2001. "Regionalism in the nineties: what effect on trade?," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 1-29, March.
    5. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, vol. 47(1), pages 61-95, June.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. Jeffrey A. Frankel & Andrew K. Rose, 2000. "Estimating the Effect of Currency Unions on Trade and Output," NBER Working Papers 7857, National Bureau of Economic Research, Inc.
    8. Baldwin, Richard, 1988. "Hyteresis in Import Prices: The Beachhead Effect," American Economic Review, American Economic Association, vol. 78(4), pages 773-785, September.
    9. Böhme, Hans & Laaser, Claus-Friedrich & Sichelschmidt, Henning & Soltwedel, Rüdiger, 1998. "Transport in the Baltic Sea region: Perspectives for the economies in transition," Open Access Publications from Kiel Institute for the World Economy 1291, Kiel Institute for the World Economy (IfW Kiel).
    10. Richard Baldwin & Paul Krugman, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 635-654.
    11. Walter Isard, 1949. "The General Theory of Location and Space-Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 63(4), pages 476-506.
    12. Schrader, Klaus & Laaser, Claus-Friedrich, 1994. "Die baltischen Staaten auf dem Weg nach Europa: Lehren aus der Süderweiterung der EG," Open Access Publications from Kiel Institute for the World Economy 819, Kiel Institute for the World Economy (IfW Kiel).
    13. Kanta Marwah & Lawrence Klein, 1995. "The Possibility of Expanding Asia-Pacific Economic Integration," Carleton Economic Papers 95-03, Carleton University, Department of Economics, revised Sep 1995.
    14. Barry Eichengreen & Douglas A. Irwin, 1998. "The Role of History in Bilateral Trade Flows," NBER Chapters, in: The Regionalization of the World Economy, pages 33-62, National Bureau of Economic Research, Inc.
    15. Laaser, Claus-Friedrich & Schrader, Klaus, 1992. "Zur Reintegration der baltischen Staaten in die Weltwirtschaft," Open Access Publications from Kiel Institute for the World Economy 1526, Kiel Institute for the World Economy (IfW Kiel).
    16. Avinash Dixit, 1989. "Hysteresis, Import Penetration, and Exchange Rate Pass-Through," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(2), pages 205-228.
    17. Kanata Marwah, 1995. "Shifts in the Multilateral Trade Structure of Canada and India: Market Shares, Trade Entropy and Growth," Carleton Economic Papers 95-05, Carleton University, Department of Economics, revised 1997.
    18. Bhagwati, Jagdish & Panagariya, Arvind, 1996. "The Theory of Preferential Trade Agreements: Historical Evolution and Current Trends," American Economic Review, American Economic Association, vol. 86(2), pages 82-87, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anagnostou Ageliki & Panteladis Ioannis, 2016. "Eurasian orientation and global trade integration: the case of Turkey," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 275-287, August.
    2. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Paas, Tiiu & Tafenau, Egle, 2005. "European Trade Integration in the Baltic Sea Region - A Gravity Model Based Analysis," Discussion Paper Series 26263, Hamburg Institute of International Economics.
    4. Selim Jürgen Ergun & Bahri Yilmaz, 2003. "The Foreign Trade Pattern and Foreign Trade Specialization of Candidates of the European Union," Eastward Enlargement of the Euro-zone Working Papers wp19, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Sep 2003.
    5. Carolina Rojas Sánchez & Álvaro Pío Gómez Olaya2, 2018. "Los acuerdos comerciales bilaterales: el caso Colombiano (1990-2015)," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 37(65), pages 114-156, February.
    6. Shinyekwa, Isaac & Othieno, Lawrence, 2013. "Comparing the Performance of Uganda’s Intra-East African Community Trade and Other Trading Blocs: A Gravity Model Analysis," Research Series 150227, Economic Policy Research Centre (EPRC).
    7. Ana Bobirca & Cristiana Cristureanu & Paul-Gabriel Miclaus, 2008. "Development of an Integrated Framework for Evaluating International Services Trade Competitiveness. The Case of Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 11(27), pages 49-66, January.
    8. Laaser, Claus-Friedrich & Schrader, Klaus, 2003. "Neue Partner in Europa: der baltische Außenhandel im Umbruch," Open Access Publications from Kiel Institute for the World Economy 3128, Kiel Institute for the World Economy (IfW Kiel).
    9. Shinyekwa, Isaac & Othieno, Lawrence, 2011. "Uganda's revealed comparative advantage: the evidence with the EAC and China," Research Series 150474, Economic Policy Research Centre (EPRC).
    10. Lammers, Konrad, 2002. "Die Osterweiterung aus raumwirtschaftlicher Perspektive - Prognosen regionalokonomischer Theorien und Erfahrungen aus der bisherigen Integration in Europa," Discussion Paper Series 26126, Hamburg Institute of International Economics.
    11. Lammers, Konrad, 2002. "Die Osterweiterung aus raumwirtschaftlicher Perspektive: Prognosen regionalökonomischer Erfahrungen aus der bisherigen Integration in Europa," HWWA Discussion Papers 195, Hamburg Institute of International Economics (HWWA).
    12. Shinyekwa, Isaac & Lawrence, Othieno, 2013. "Comparing the Performance of Uganda’s Intra-East African Community Trade and Other Trading Blocs: A Gravity Model Analysis," Research Series 159667, Economic Policy Research Centre (EPRC).
    13. Bobirca Ana & Miclaus Paul Gabriel & Ungureanu Stefan & Lupu Radu & Lupu Radu, 2008. "International services trade patterns and specialization potential: a comparative Assessment," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 49-54, May.
    14. Horsewood, Nicholas & Voicu, Anca Monika, 2011. "Does corruption facilitate trade for the new EU members?," Economics Discussion Papers 2011-53, Kiel Institute for the World Economy (IfW Kiel).
    15. Tiiu Paas & Egle Tafenau, 2004. "The Baltic Sea Region’s Role in Trade Integration," University of Tartu - Faculty of Economics and Business Administration, in: Tiiu Paas & Egle Tafenau (ed.), Modelling the Economies of the Baltic Sea Region, edition 1, volume 17, chapter 3, pages 92-115, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    16. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the 'enlarged' European Union," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 245-260, December.
    17. Julia Spies & Helena Marques, 2006. "Trade Effects of the Europe Agreements," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 274/2006, Department of Economics, University of Hohenheim, Germany.
    18. Maryanchyk Ivan, 2005. "Ukrainian international trade: How far from the potential?," EERC Working Paper Series 05-14e, EERC Research Network, Russia and CIS.
    19. Roberta De Santis & Claudio Vicarelli, 2007. "The “deeper” and the “wider” EU strategies of trade integration.An empirical evaluation of EU Common Commercial Policy effects," ISAE Working Papers 79, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laaser, Claus-Friedrich & Schrader, Klaus, 2004. "The Baltic States' integration into the European division of labour," Kiel Working Papers 1234, Kiel Institute for the World Economy (IfW Kiel).
    2. Nahuis, Richard, 2004. "One size fits all?: Accession to the internal market; an industry-level assessment of EU enlargement," Journal of Policy Modeling, Elsevier, vol. 26(5), pages 571-586, July.
    3. Maria Cipollina & Luca Salvatici, 2010. "Reciprocal Trade Agreements in Gravity Models: A Meta‐Analysis," Review of International Economics, Wiley Blackwell, vol. 18(1), pages 63-80, February.
    4. Jan Fidrmuc & Jarko Fidrmuc, 2003. "Disintegration and Trade," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 811-829, November.
    5. Simeon Djankov & Caroline L. Freund, 1998. "Disintegration," International Finance Discussion Papers 618, Board of Governors of the Federal Reserve System (U.S.).
    6. Anderson, Michael A. & Smith, Stephen L.S., 2007. "How does history matter? Hysteresis in Canadian trade," The North American Journal of Economics and Finance, Elsevier, vol. 18(3), pages 279-291, December.
    7. Cardamone, Paola, 2007. "A Survey of the Assessments of the Effectiveness of Preferential Trade Agreements using Gravity Models," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 60(4), pages 421-473.
    8. Fetzer, James J. & Rivera, Sandra A., 2005. "Modeling Modifications in Rules of Origin: A Partial Equilibrium Approach," Conference papers 331372, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
    10. Mr. Rikhil Bhavnani & Ms. Natalia T. Tamirisa & Mr. Arvind Subramanian & Mr. David T. Coe, 2002. "The Missing Globalization Puzzle," IMF Working Papers 2002/171, International Monetary Fund.
    11. I-Hui Cheng & Howard J. Wall, 2005. "Controlling for heterogeneity in gravity models of trade and integration," Review, Federal Reserve Bank of St. Louis, vol. 87(Jan), pages 49-63.
    12. Campbell, Douglas L., 2020. "Relative Prices and Hysteresis: Evidence from US Manufacturing," European Economic Review, Elsevier, vol. 129(C).
    13. Chiţu, Livia & Eichengreen, Barry & Mehl, Arnaud, 2014. "History, gravity and international finance," Journal of International Money and Finance, Elsevier, vol. 46(C), pages 104-129.
    14. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the 'enlarged' European Union," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 245-260, December.
    15. Fidrmuc, J. & Fidrmuc, J., 2000. "Integration, Disintegration and Trade in Europe : Evolution of Trade Relations during the 1990s," Other publications TiSEM b96a2a90-706a-4daa-8dd2-6, Tilburg University, School of Economics and Management.
    16. Michele Fratianni & Francesco Marchionne, 2011. "The Limits to Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 9, Edward Elgar Publishing.
    17. repec:lic:licosd:9901 is not listed on IDEAS
    18. Baldwin, Richard E. & Skudelny, Frauke & Taglioni, Daria, 2005. "Trade effects of the euro: evidence from sectoral data," Working Paper Series 446, European Central Bank.
    19. Shinyekwa, Isaac & Othieno, Lawrence, 2013. "Comparing the Performance of Uganda’s Intra-East African Community Trade and Other Trading Blocs: A Gravity Model Analysis," Research Series 150227, Economic Policy Research Centre (EPRC).
    20. Palakiyèm Kpemoua, 2023. "Effects of the dynamic of regional integration on West Africa's trade [Effets de la dynamique de l'intégration régionale sur le commerce bilatéral en Afrique de l'Ouest]," Post-Print hal-04178262, HAL.
    21. Philippa Dee, 2005. "The Australia–US Free Trade Agreement - An Assessment," Trade Working Papers 22309, East Asian Bureau of Economic Research.

    More about this item

    Keywords

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

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • N74 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: 1913-
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:1088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.