OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Getting the most out of trade in Estonia

Estonia is highly integrated into the global trade system: it exports approximately 80% of GDP and around half of domestic employment is sustained by foreign demand. Given that international trade and foreign direct investment are considered as major channels of technology diffusion and productivity growth, this bodes well for reviving income convergence. To capitalize on the country’s high trade intensity, policymakers need to remove remaining trade barriers and improve policies fostering knowledge diffusion as well as talent retention and attraction. At the same time, to ensure that benefits of more trade are shared across the population, the social safety net should be bolstered, and participation in upskilling programmes and their labour-market relevance increased.

This Working Paper relates to the 2017 OECD Economic Survey of New Zealand (www.oecd.org/eco/surveys/economic-survey-estonia.htm).


Keywords: social safety net, global value chains, innovation, productivity, migration
JEL: F68: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Policy; O24: Economic Development, Innovation, Technological Change, and Growth / Development Planning and Policy / Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy; O52: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: Europe; I31: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / General Welfare; Well-Being; F43: International Economics / Macroeconomic Aspects of International Trade and Finance / Economic Growth of Open Economies; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; F22: International Economics / International Factor Movements and International Business / International Migration
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