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European Integration and Changing Trade Patterns: The Case of the Baltic States

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  • Claus-Friedrich Laaser
  • Klaus Schrader
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    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.

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    File URL: https://www.econstor.eu/dspace/bitstream/10419/2690/1/kap1088.pdf
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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1088.

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    Length: 51 pages
    Date of creation: Jan 2002
    Date of revision:
    Handle: RePEc:kie:kieliw:1088

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    Related research

    Keywords: Eastern enlargement; regional integration; gravity model; Baltic trade patterns;

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    References

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    1. Richard Baldwin, 1988. "Hysteresis In Import Prices: The Beachhead Effect," NBER Working Papers 2545, National Bureau of Economic Research, Inc.
    2. Deardoff, A.V., 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," Working Papers, Research Seminar in International Economics, University of Michigan 382, Research Seminar in International Economics, University of Michigan.
    3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
    4. Tamim Bayoumi & Barry J. Eichengreen, 1995. "Is Regionalism Simply a Diversion? Evidence from the Evolution of the EC and EFTA," IMF Working Papers 95/109, International Monetary Fund.
    5. Schrader, Klaus & Laaser, Claus-Friedrich, 1994. "Die baltischen Staaten auf dem Weg nach Europa : Lehren aus der Süderweiterung der EG," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 819, Kiel Institute for the World Economy (IfW).
    6. Laaser, Claus-Friedrich & Schrader, Klaus, 1992. "Zur Reintegration der baltischen Staaten in die Weltwirtschaft," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 1526, Kiel Institute for the World Economy (IfW).
    7. Simeon Djankov & Caroline Freund, 1998. "Disintegration," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 618, Board of Governors of the Federal Reserve System (U.S.).
    8. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, National Bureau of Economic Research, Inc, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
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    14. Hamilton, C.B. & Winters, L.A., 1992. "Opening Up International Trade in Eastern Europe," Papers, Stockholm - International Economic Studies 511, Stockholm - International Economic Studies.
    15. Böhme, Hans & Laaser, Claus-Friedrich & Sichelschmidt, Henning & Soltwedel, Rüdiger, 1998. "Transport in the Baltic Sea region: Perspectives for the economies in transition," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 1291, Kiel Institute for the World Economy (IfW).
    16. Frankel, Jeffrey & Stein, Ernesto & Wei, Shang-jin, 1995. "Trading blocs and the Americas: The natural, the unnatural, and the super-natural," Journal of Development Economics, Elsevier, Elsevier, vol. 47(1), pages 61-95, June.
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    21. Krieger-Boden, Christiane, 1995. "Die räumliche Dimension in der Wirtschaftstheorie: Ältere und neuere Erklärungsansätze," Open Access Publications from Kiel Institute for the World Economy, Kiel Institute for the World Economy (IfW) 832, Kiel Institute for the World Economy (IfW).
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    Citations

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    Cited by:
    1. 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).
    2. Luca De Benedictis & Roberta De Santis & Claudio Vicarelli, 2005. "Hub-and-Spoke or else? Free trade agreements in the “enlarged” European Union," ISAE Working Papers, ISTAT - Italian National Institute of Statistics - (Rome, ITALY) 52, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    3. Paas, Tiiu & Tafenau, Egle, 2005. "European trade integration in the Baltic Sea Region - A gravity model based analysis," HWWA Discussion Papers 331, Hamburg Institute of International Economics (HWWA).
    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, Free University Berlin, Jean Monnet Centre of Excellence wp19, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Sep 2003.
    5. Julia Spies & Helena Marques, 2006. "Trade Effects of the Europe Agreements," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim, Department of Economics, University of Hohenheim, Germany 274/2006, Department of Economics, University of Hohenheim, Germany.
    6. 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, Kiel Institute for the World Economy (IfW) 3128, Kiel Institute for the World Economy (IfW).

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