Kiel Working Papers, Kiel Institute for World Economics
No 1234:
The Baltic States' Integration into the European Division of Labour
Claus-Friedrich Laaser and Klaus Schrader
Abstract: The analysis of Baltic trade statistics and gravity
estimates reveal that Estonia, Latvia and Lithuania have rapidly integrated
into the international division of labour with a distinct EU focus. The
Baltic States have taken a road towards the EU common market which pays
particular attention to close trade relations with their immediate
neighbours in the Baltic Sea Region. The Baltic Sea obviously serves as a
major integrating device for these countries. At the same time the Baltic
States, although being no longer integrated into the former intra-Soviet
division of labour, have not abandoned their contacts to the Soviet
successor states altogether. Accordingly, they still have the potential to
serve as a gateway from Europe to the CIS markets.
Keywords: Baltic trade patterns, Eastern enlargement, regional integration, gravity model; (follow links to similar papers)
JEL-Codes: F14,; F15,; N74; (follow links to similar papers)
38 pages, December 2004
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