Foreign Trade Patterns Between Estonia and the EU

Grigori Fainštein () and Aleksei Netšunajev

International Advances in Economic Research, 2010, vol. 16, issue 3, 324 pages

Abstract: In this paper, we focus on the development of the foreign trade flows between Estonia and the EU. We observe rapid reorientation of the trade flows from the former Soviet Union towards Western markets because of economic reforms and foreign trade liberalization. Moreover, we determine the commodity groups with a comparative advantage in the EU market and analyze its dynamics. Further analysis of the intra-industry trade (ITT) shows that vertical IIT plays a dominant role in Estonian-EU IIT flows. Shares of total, vertical, and horizontal IIT have grown rapidly since 2004, the year of accession to the EU. Copyright International Atlantic Economic Society 2010

Keywords: Estonia; Comparative advantage; Vertical/horizontal intra-industry trade; F15; O57 (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1007/s11294-010-9267-y

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