Kiel Working Papers, Kiel Institute for World Economics
No 1088:
European Integration and Changing Trade Patterns: The Case of the Baltic States
Claus-Friedrich Laaser and Klaus Schrader
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.
Keywords: Eastern enlargement, regional integration, gravity model, Baltic trade patterns; (follow links to similar papers)
JEL-Codes: F14; F15; N74; (follow links to similar papers)
51 pages, January 2002
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