High-tech exports and incomes in the Baltic Sea region in the long-run: can high-tech boost general welfare in the economy?

Abstract

Governments heavily focus on advancing capital-intense high-tech production and exports for economic growth. The findings on seven European Union (EU) countries associated as the Baltic Sea region countries argue that despite more than 15 years in the EU, Latvia, Lithuania, Poland maintain dissimilar pattern compared to Sweden, Finland, but Estonia and Denmark are outliers in 2007–2021. Strong correlation between high-tech exports in total exports and income level per capita is detected only in Poland, Latvia, and Lithuania; weak and even negative in Sweden and Finland. Growing high-tech exports are resulted in greenhouse emissions reductions. Policy makers are recommended to modify the plans on digital transformation, productivity and the European Green Deal for sustainable and long-term effect.