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Estonia in Global Value Chains

Author

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  • Ali-Yrkkö, Jyrki
  • Mattila, Juri
  • Seppälä, Timo

Abstract

In this study, we analyse Estonia’s position in global value chains using World Input-Output Data and firm-level data. We find that 69% of Estonia’s total exports are intermediate goods and services, exceeding the EU average (65%). Two-thirds of Estonian imports are intermediates. Our findings suggest that Estonia is heavily involved in vertically and geographically fragmented production even though its most significant trading partners are its neighbouring countries. We also analyse the value chains of two significant companies operating in the Estonian economy along with their GDP contributions. According to our findings, the GDP contributions generated by the exports of these two companies vary significantly from one another. The euros generated from exports do not contribute equally to the national economy.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Mattila, Juri & Seppälä, Timo, 2017. "Estonia in Global Value Chains," ETLA Reports 69, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:69
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Global value chains; GVC; GDP; Exports; Gross domestic product; Value added; Estonia; Granular;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F6 - International Economics - - Economic Impacts of Globalization
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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