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

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  • 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
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    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.
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    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: Modelling the Economies of the Baltic Sea Region, 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).

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    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

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