The impact of Scandinavian economies on Estonia via foreign trade and direct investments
AbstractThe paper focuses on the benefits, challenges and risks of the Estonian economy stemming from close relations with its main foreign partners Finland and Sweden, through foreign direct investments and foreign trade. The paper gives a short overview of Finnish and Swedish economies to provide a background for the analysis of the characteristics of FDI and trade flows between Estonia and these countries. As Estonia is a very small and open economy main benefits and challenges are related to it. The authors find that FDI from Finland and Sweden increase the credibility of Estonian economy, but as foreign investment flows are subject to push factors they have the potential of destabilising capital flows, because these two countries make over 70% of FDI into Estonia. The authors also find that the dynamics of Estonian exports to Finland and Sweden (which make more than half of total exports) is generally determined by the demand factors of those countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bank of Estonia in its series Bank of Estonia Working Papers with number 2002-4.
Length: 27 pages
Date of creation: 10 Nov 2002
Date of revision: 12 Nov 2002
Publication status: published
Postal: Estonia bld. 13, 15095 Tallinn, ESTONIA
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-25 (All new papers)
- NEP-FMK-2005-07-25 (Financial Markets)
- NEP-INT-2005-07-25 (International Trade)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brenton, Paul & DiMauro, Francesca & Lücke, Matthias, 1998.
"Economic integration and FDI: an empirical analysis of foreign investment in the EU and in Central and Eastern Europe,"
Kiel Working Papers
890, Kiel Institute for the World Economy.
- Paul Brenton & Francesca Di Mauro & Matthias LÃ¼cke, 1999. "Economic Integration and FDI: An Empirical Analysis of Foreign Investment in the EU and in Central and Eastern Europe," Empirica, Springer, vol. 26(2), pages 95-121, June.
- n/a, 2002. "The Role of Efficiency as an Explanation of International Income Differences," NIESR Discussion Papers 137, National Institute of Economic and Social Research.
- Bevan, Alan & Estrin, Saul, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," CEPR Discussion Papers 2638, C.E.P.R. Discussion Papers.
- Hernesniemi, Hannu, 2000. "Evaluation of Estonian Innovation System," Discussion Papers 722, The Research Institute of the Finnish Economy.
- Alan A. Bevan & Saul Estrin, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," William Davidson Institute Working Papers Series 342, William Davidson Institute at the University of Michigan.
- Andres Vesilind & Laura Ehrlich, 2001. "Determinants of Estonian export of goods: an econometric analysis and comparison with Latvia and Lithuania," Bank of Estonia Working Papers 2001-1, Bank of Estonia, revised 13 Oct 2001.
- J. Hatzius, 1997. "Foreign direct investment," LSE Research Online Documents on Economics 20351, London School of Economics and Political Science, LSE Library.
- Andreas Hoffmann, 2010.
"An Overinvestment Cycle In Central And Eastern Europe?,"
Wiley Blackwell, vol. 61(4), pages 711-734, November.
- Hoffmann, Andreas, 2009. "An Overinvestment Cycle in Central and Eastern Europe?," MPRA Paper 15668, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peeter Luikmel).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.