Strategies for Deeper Integration: Case Study of the Baltics

Abstract

When we talk about international integration, trade and investment, the it's-all-about-geographic-proximity is a tempting argument to make. While the importance of geographic closeness cannot be denied, empirical evidence suggests existence of other, perhaps equally significant factors that bring countries closer together. The aim of this paper is to sketch some light on an often overlooked aspect of international integration, recently introduced as the 'new regionalism' paradigm. Based on the proposed 'mentoring' and 'the training ground' concepts we analyze such integration within the Baltic Sea region, suggesting an alternative approach to international economic convergence.JEL Classification: F15, F20, C30