The Impact of European Union Membership on Competitiveness and Specialisation in Lithuania

Abstract

This paper analyses Lithuania’s competitiveness in the context of enlarged European Union. Aiming to assess the extent of structural change after the accession, the patterns of the country’s inter- and intra-industry trade specialisation are evaluated. Inter-industry specialisation is investigated using revealed comparative advantage index pioneered by Balassa, while the analysis of intra-industry specialisation is based on Grubel-Lloyd index. The results disclose almost unchanged patterns of both types of specialisation and suggest little prospects for the country’s prosperity and long term welfare gains.