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Foreign Trade Patterns Between Estonia and the EU

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  • Grigori Fainštein
  • Aleksei Netšunajev

Abstract

In this paper, we focus on the development of the foreign trade flows between Estonia and the EU. We observe rapid reorientation of the trade flows from the former Soviet Union towards Western markets because of economic reforms and foreign trade liberalization. Moreover, we determine the commodity groups with a comparative advantage in the EU market and analyze its dynamics. Further analysis of the intra-industry trade (ITT) shows that vertical IIT plays a dominant role in Estonian-EU IIT flows. Shares of total, vertical, and horizontal IIT have grown rapidly since 2004, the year of accession to the EU. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Grigori Fainštein & Aleksei Netšunajev, 2010. "Foreign Trade Patterns Between Estonia and the EU," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 16(3), pages 311-324, August.
    • Handle: RePEc:kap:iaecre:v:16:y:2010:i:3:p:311-324:10.1007/s11294-010-9267-y
    DOI: 10.1007/s11294-010-9267-y
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    Cited by:

    1. Mitchell Kellman & Mitchell Yochanan Shachmurove, 2012. "Trade Sophistication in a Transition Economy: Poland 1980–2009," Working Papers 64, Department of Applied Econometrics, Warsaw School of Economics.

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    More about this item

    Keywords

    Estonia; Comparative advantage; Vertical/horizontal intra-industry trade; F15; O57;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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