Regional Integration and Baltic Trade and Investment Performance

41 Pages Posted: 15 Feb 2006

See all articles by Piritta Sorsa

Piritta Sorsa

International Monetary Fund (IMF)

Date Written: December 1997


This paper analyzes the role of regional arrangements in trade and foreign direct investment (FDI) performance in the Baltics. While progress with transition is a key determinant of trade and FDI performance, regional arrangements with Western Europe have helped develop trade and transfer of technology, but have not yet led to export-related foreign direct investment toward the European Union. The main reasons for this are policy uncertainties, need for more progress with transition, and restrictions in the trade agreements, especially on the European Union side. Intra-Baltic integration has not yet led to substantial trade and FDI growth between the Baltics.

JEL Classification: F13, F15

Suggested Citation

Sorsa, Piritta, Regional Integration and Baltic Trade and Investment Performance (December 1997). IMF Working Paper No. 97/167, Available at SSRN:

Piritta Sorsa (Contact Author)

International Monetary Fund (IMF) ( email )

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Washington, DC 20431
United States

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