Abstract
Abstract. The article presents an analysis of the production and trade structure in three Baltic countries. Both exports and imports were emphasized, pointing out the importance of regional shifts and specialization patterns. The research was performed using the input–output model to determine the relative importance of respective production changes over time and the key differences among the Baltic countries. The paper also analyses the backward and forward inter-industry linkages of manufacturing and service industries. The results have indicated that during the period under analysis the share of sectors creating a lower value added has decreased, and a deeper economic integration was observed in the majority of industrial sectors of the Baltic countries with manifesting stronger forward linkages.Key words: inter-industry linkages, economic structure, the Baltic countries
Highlights
The European economic integration has substantially changed economic relations, positively affected the volumes of trade and the mobility of factors of production among the European regions
The key issue remains to be whether, due to an increase in regional integration, the cohesion and prosperity will increase or, vice versa, decline. This issue becomes even more important for the new European Union (EU) members which use the economic integration process to achieve a higher level of economic development reached by the old member states, to increase productivity and gain a foothold in the higher value added production chain of goods and services
The economic integration of the Baltic States has rarely been examined by evaluating the international interdependence with the EU countries and their economic sectors which, even in similar economic structures, may vary considerably depending on different multiplier effects
Summary
The European economic integration has substantially changed economic relations, positively affected the volumes of trade and the mobility of factors of production among the European regions. The key issue remains to be whether, due to an increase in regional integration, the cohesion and prosperity will increase or, vice versa, decline Today, this issue becomes even more important for the new European Union (EU) members which use the economic integration process to achieve a higher level of economic development reached by the old member states, to increase productivity and gain a foothold in the higher value added production chain of goods and services. This issue becomes even more important for the new European Union (EU) members which use the economic integration process to achieve a higher level of economic development reached by the old member states, to increase productivity and gain a foothold in the higher value added production chain of goods and services This is a complex task for the Baltic countries as the old EU member states tend to develop economic relations with the neighbouring countries rather than with the peripherally located Baltic countries. Unlike the conventional trade statistics, this method allows to determine reliably the interdependence of countries and economic sectors, whereas the consumption of goods and services can be broken down by using economic sectors and end users
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