Working Paper

The Baltic States' Integration into the European Division of Labour


  • Laaser
  • C.-F.
  • Schrader
  • K.
Publication Date

The analysis of Baltic trade statistics and gravity estimates reveal that Estonia, Latvia and Lithuania have rapidly integrated into the international division of labour with a distinct EU focus. The Baltic States have taken a road towards the EU common market which pays particular attention to close trade relations with their immediate neighbours in the Baltic Sea Region. The Baltic Sea obviously serves as a major integrating device for these countries. At the same time the Baltic States, although being no longer integrated into the former intra-Soviet division of labour, have not abandoned their contacts to the Soviet successor states altogether. Accordingly, they still have the potential to serve as a gateway from Europe to the CIS markets.


JEL Classification
F14, F15, N74

Key Words

  • Baltic States
  • Eastern enlargement
  • Estonia
  • gravity model
  • Latvia
  • Lithuania