Dovgal О. А., Doctor of Economic Sciences, Professor, Professor of the Department of International Economic Relations and Logistics, V.N. Karazin Kharkiv National University, Kharkiv, Ukraine

ORCID ID: 0000-0003-3219-9731
e-mail: e.dovgal@karazin.ua

The Effects of Transformation of the Baltic Economies in the Process of European Integration

Abstract. Introduction. The foreign market with the European Union opens up various prospects for the development of the Baltic countries’ economies, considering the obvious lower prices in the West. In any case, it is functional and achieves well-developed infrastructure for transport and other industrial, rural, and service areas that were lost during economic downturns.

Purpose. The purpose of this article is to analyze the effects of transformation of the economies of the Baltic countries in the process of European integration.

Results. At the beginning of the post-Soviet development period, the Baltic countries began carrying out reforms and joining Euro-Atlantic structures as soon as possible, starting with the EU and NATO. Otherwise, the implementation of reforms would have a minimal negative impact. The analysis demonstrated that the Baltic countries’ early EU membership was marked by hostile economic growth after the 2008–2009 global financial crisis. The pace of economic development in the Baltic countries slowed down noticeably.

Conclusions. Thus, the country’s prospects for EU membership and accession to the European monetary system can be viewed positively. Their economies demonstrated significant success, particularly in the early years after joining the EU. It is important to note, however, that this success has a turning point. In Sweden, for example, a significant increase in GDP was due to foreign investment and financial assistance from various EU funds. 

Keywords: Baltic countries; Lithuania; Latvia; Estonia; European Union; European integration; economic transformation.

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