Grigori Fainstein


This paper describes specialisation dynamics in Estonian export using revealed comparative advantage (RCA) and intra-industry trade (IIT) measures. We analyse the development of the distribution of comparative advantage using descriptive statistics and Galtonian regression. Intra-industry trade dynamic is analyzed using a marginal approach. We generally observe a stable specialization structure of Estonian exports in 2006-2011, along with some changes in specialization in the years following that. Based on the analysis of the RSA index and the Galtonian regression, we can make the conclusion about the diversification of the specialisation structure. The most important component of trade expansion in Estonia within the considered time period is the intra-industry trade. In 2016-2020 there was a significant increase in the specialization shift component in trade dynamic, which indicates the structural changes in Estonian exports. The most essential structural changes during the last five years occurred in such commodity sectors as food and live animals, animal and vegetable oils, as well as machinery and transport equipment, which were caused by the increasing share of specialization shift.

How to Cite

Fainstein, G. (2021). DEVELOPMENT OF ESTONIAN TRADE PATTERNS. Baltic Journal of Legal and Social Sciences, (1), 4-10.
Article views: 35 | PDF Downloads: 12



сomparative advantage, specialization, trade patterns, intra-industry trade, Balassa index of revealed comparative advantage, Grubel-Lloyd index


Balassa B. (1965) Trade Liberalization and Revealed Comparative Advantage. – The Manchester School of Economic and Social Studies. No 33. Р. 99–123.

Bastos P., Cabral M. (2007) The Dynamics of International Trade Patterns. – Review of World Economics (Weltwirtschaftliches Archiv). Springer. Vol. 143 (3). October. Р. 391– 415.

Brülhard M. (1994) Marginal Intra-Industry Trade: Measurement and Relevance for the Pattern of Industrial Adjustment. – Weltwirtschaftliches Archiv. Vol. 130. Р. 600 – 613.

Dalum B, Laursen K, Villumsen G. (1998) Structural Change in OECD Export Specialisation Patterns: De-Specialisation and ’Stickiness’. – International Review of Applied Economics. No 12 (2) P. 423 – 443.

Either W. J. (1982) National and International Return to Scale in the Modern Theory of International World Trade. – American Economic Review. No 72. P. 389 – 405.

Grubel H.G., Lloyd P.J. (1975) Intra-Industry Trade. The Theory and Measurement of International Trade in Different Products. London.

Fainštein G., Matina E. (2015). Trade dynamics and adjustment costs in the Baltic States. – Economic Sciences. No 4 (125). P. 164 −169.

Ferto I. (2007) The Dynamics of Trade in Central and Eastern European Countries. – Managing Global Transitions, University of Primorska, Faculty of Management Koper. No 5 (1). P. 5 −23.

Krugman P. (1987) The Narrow Moving Band, the Dutch Disease, and the Competitive Consequences of Mrs. Thatcher: Notes on Trade in the Presence of Dynamic Scale Economies. − Journal of Development Economics. No 27 (1). P. 4 − 54.

Redding S. (2002) Specialization Dynamics. − Journal of International Economics. No 58 (1). P. 299 − 334.

Wong K. (1995) International Trade in Goods and Factor Mobility. MIT Press, Cambridge.