TRADE SPECIALIZATION PATTERN OF LITHUANIA
Keywords:international trade, trade specialization, intra-industry trade, relative trade advantage index, Grubel-Lloyd index
This paper analyses the pattern of trade specialization in Lithuania. The pattern of specialization is at the core of the international trade theory. The significance of the international trade lies in the fact that countries are not required to produce all their consumption goods; instead they can specialize in the production of certain goods. Many studies suggest that the more developed the country is; the more specialized is the structure of international trade and, therefore, a larger part of trade within a branch dominates in the total scope of international trade. The globalization and integration processes have a major impact on the international trade system. Lithuania's integration into the European Union has opened huge possibilities for Lithuanian international trade. Research shows that it has also influenced changes of trade specialization. At the same time, the research investigating such changes is missing. For this reason the actual problem is to estimate the pattern of Lithuanian trade specialization under existing conditions.
The objective of this paper is to analyze the pattern of trade specialization of Lithuania under existing conditions.