International Advances in Economic Research

, Volume 16, Issue 3, pp 311–324

Foreign Trade Patterns Between Estonia and the EU



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.


Estonia Comparative advantage Vertical/horizontal intra-industry trade 


F15 O57 

Copyright information

© International Atlantic Economic Society 2010

Authors and Affiliations

  1. 1.Tallinn School of Economics and Business AdministrationTallinn University of TechnologyTallinnEstonia

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