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Trade and foreign direct investments as measures of spatial integration in the Baltic Sea rim region

Andreas Cornett () and Folke Snickars ()

ERSA conference papers from European Regional Science Association

Abstract: The main purpose of the current paper is to provide a closer look at the processes of economic transition and integration in the Baltic Sea Region since the early 1990s. Focal points are regional and sub-regional integrative processes with regard to trade and foreign direct investment. The crucial issue is to analyse three complementary aspects of integration of the BSR. The first is a critical assessment of the BSR as a region within the European economic system, as it has been sketched in various publications from the European Commission. Secondly the paper tries to evaluate whether the BSR constitutes a coherent functional economic region based on the analysis of economic flows within the region and to the outside. Finally, an attempt is made to identify sub-regional economic units within the BSR. Data for the paper is provided from two sources, an empirical study of trade in the Danish textile industy and a survey of foreign direct investment occurring among all countries in the Baltic Sea rim region in 2000. A special study is made of Nordic firms establishing operations in the Baltic countries.

Date: 2002-08
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