Value added exports and competitiveness in the Baltic States

Abstract

The paper is devoted to the analysis of the exports and competitiveness in the Baltic States from the trade in value added perspective. The main objective is to determine the differences in export patterns measured in gross terms and in value added terms and the implications on competitiveness. Focusing on the recent trend to facilitate high value added exports, the article describes high- and medium-high-tech industries as classified by the EUROSTAT in more detail. OECD database is used for the study purposes, data are analysed using different statistical methods, including the calculation of relative indicators and regression analysis. The results show that Lithuania seems to be more competitive Baltic Country in general terms, but Latvia is lagging behind in the sector of high- and medium-high-tech industries.