Development of intra-industry trade among the Baltic states

by Bernatonyt?, Dalia

This article investigates development of intraindustry trade among the Baltic States in the context of the EU integration. It was determined that in recent years the share of Lithuanian, Latvian and Estonian intra-industry trade has raised. This article analyses the basic theories and methods of intra-industry trade measurement; the influence of this form of trade on the changes of international trade structure. For measurement of intra-industry trade among the Baltic States two approaches have been adopted in the article. The Grubel-Lloyd index has been used to calculate the intensity of intra-industry trade. Secondly, changes in trade over time have been examined using an index of marginal intra-industry trade. Using these methods of measurement and Combined Nomenclature of commodities (CN) the main directions of nature and pattern of Baltic States foreign trade development have been calculated.