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The Economic Integration of the Nordic -Baltic Region through Labour, Innovation, Investments and Trade

Project promoter: Vilnius Gediminas Technical University
Project title: The Economic Integration of the Nordic -Baltic Region through Labour, Innovation, Investments and Trade
Project code: LT08-1-ŠMSM-K01-008 (Project contract No S-BMT-21-7 (LT08-2-LMT-K-01-070))
Project eligible expenditure: EUR 998742,9 (EUR 848931,47 grant from the EEA Financial Mechanism and EUR 149811,44 budget co-financing) 
Project signature date: 15 January 2021
Project implementation period: 1 January 2021 - 31 December 2023
Project partners: 
Institute of Transport Economics (NO)
University of Latvia (LV)
University of Tartu (EE)
Project website
Project summary:
The international economic relations between the Baltic States and the Northern European region strengthened significantly after the Baltic countries joined the European Union in 2004. The labour markets of Northern countries have been opened for the citizens of the Baltic States. Further, the volume of export of goods and services have been increasing, Nordic capital companies invest and expand their business in the Baltic countries. However, the close cooperation of the region brought not only economic or technological benefits to the Baltic countries, but also increased emigration flows from the Baltic to the Nordic countries. The emigration problem had a particularly negative impact on the economies of Lithuania and Latvia. In addition, these two countries faced with the "brain drain" problem. The impact of the project is revealed through the main directions of research: LIFT-labour, innovations, foreign direct investments, trade.
First, the results of the project will help us to determine the causes and consequences of migration for the growth or changes of economic sectors and the structure of the economy. In addition, the detailed analysis of emigration problems and the obtained results will allow forming re-emigration policy, preparing integration of measures for emigrants returning to society, and also developing measures to stop emigration. Secondly, the analysis of successful examples of innovation and technology transfer from the Nordic countries to the Baltic countries, their impact on the creating new businesses, new products or services, will help to form a targeted innovation and technology transfer policy, to select measures to implement it, and to prepare an attractive innovation- and knowledge-receptive infrastructure.
Third, the development of foreign capital companies creates jobs and also transfer technologies and good practices. Therefore, the analysis will reveal the most attractive business branches for foreign investors. And at the same time, policy guidelines will be prepared to attract foreign capital companies to the targeted business sectors that would create high added value.
Fourth, the analysis of international trade volumes will determine the most popular goods and services, product groups, brands of the Baltic countries in the Northern European countries and vice versa. The result of this analysis will be prepared recommendations for the Chamber of Commerce to develop international economic relations with Northern European countries in the most promising business sector. Therefore, connecting the aforementioned research lines will reveal the effects of regional integration through the movement of people, knowledge, capital and goods. The results of the conducted research will be significant in preparing the guidelines for the further development of international economic relations between the Baltic countries and Northern European countries that the Baltic countries (including Lithuania) would gain the greater economic, social and technological benefits. In addition, the close cooperation between Norwegian and Baltic researchers contributes to improving the quality of research and studies.

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