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

  • Claus-Friedrich Laaser
  • Klaus Schrader
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    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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    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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    1. Barry Eichengreen & Douglas A. Irwin, 1996. "The Role of History in Bilateral Trade Flows," NBER Working Papers 5565, National Bureau of Economic Research, Inc.
    2. Deardoff, A.V., 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," Working Papers 382, Research Seminar in International Economics, University of Michigan.
    3. 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 1291, Kiel Institute for the World Economy (IfW).
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    6. 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 819, Kiel Institute for the World Economy (IfW).
    7. Deardorff, A.V., 1995. "Determinants of Bilateral Trade : Does Gravity Work in a Neoclassical World?," Papers 95-05, Michigan - Center for Research on Economic & Social Theory.
    8. Richard Baldwin & Paul R. Krugman, 1986. "Persistent Trade Effects of Large Exchage Rate Shocks," NBER Working Papers 2017, National Bureau of Economic Research, Inc.
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    17. Bhagwati, Jagdish & Panagariya, Arvind, 1996. "The Theory of Preferential Trade Agreements: Historical Evolution and Current Trends," American Economic Review, American Economic Association, vol. 86(2), pages 82-87, May.
    18. 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, vol. 47(1), pages 61-95, June.
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