Economic Integration and Regional Specialisation Development in Estonia
In the present paper regional specialisation and regional income dynamics in Estonia during 1993-2000 in the context of trade liberalization and integration with EU have been analysed. A set of specialisation indices are calculated to study regional industrial dynamics. Absolute regional specialisation is measured by Herfindahl index. Relative regional specialisation is measured by Dissimilarity index and Gini coefficient. The indices are based on data for employment in manufacturing industries classified by two-digit NACE standard. Rest of the paper discussed some estimation results for the model where regional growth is regressed on the specialisation measure and a group of regional indicators. Econometric analysis of impact of specialisation on economic growth revealed strong direct relationship between these two variables on regional level. Regional growth is also positively influenced by indicators of regional industrial development and improvement in infrastructure.
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