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Description
Since the 1990s, the Nordic-Baltic region integration has gradually deepened, receiving a new push through the EU expansion in 2004, which gave the Baltic citizens access to the labour markets of Sweden (in 2004), Finland and Iceland (in 2006), Denmark and Norway (in 2009). While many theories help to understand the nature and the potential of the regional integration processes, such as the Nordic-Baltic one, empirical evidences are still incomplete and sometimes inconclusive. The aim of the project is to study the historical performance and estimate the potential for the economic integration of the Nordic-Baltic region via labour migration, technology transfer, foreign direct investments and capital mobility, trade of both physical goods and services. The study will look both into the hitherto effect of the regional integration, the challenges caused by that and the lessons for the future policy. The interdisciplinary consortium including members from economics, international business and sociology along with the triangulation of quantitative and qualitative research methods enables a multifaceted study of the economic and social processes related to integration of the Nordic-Baltic region. The use of detailed microdata on the population of employees and employers like matched employer-employee datasets could ambitiously help to estimate the impacts of integration at high level of granularity. The study will look in particular at the effects of various policy changes affecting regional integration like EU Eastern Enlargement in 2004, changes in laws affecting companies and individuals and changes in market access. This newly gained knowledge about the economic relations within the Baltic-Nordic region will be used to increase the awareness of the potential of business and political cooperation between the Nordic and the Baltic countries. The involvement of the industry and public stakeholders in the dissemination process will ensure the outreach to the policy.
Summary of project results
LIFT was needed to understand better how international trade and factor mobility contribute to higher social wealth and economic development in the Baltic countries. Since the fall of the Soviet Union in the early 1990s, the economies of the Nordic and Baltic countries have become increasingly integrated. The EU expansion in 2004, which gave the Baltic citizens access to the labour markets of Sweden (in 2004), Finland and Iceland (in 2006), Denmark and Norway (in 2009). Empirical evidence regarding the nature and potential of the regional integration processes, such as the Nordic-Baltic one, is still incomplete and sometimes inconclusive. The project aimed to identify in a unified framework how transnational regional integration has contributed to economic development and growth in the Nordic-Baltic Region, what the associated challenges and lessons to learn for future policy design are.
The LIFT project has studied how regional economic integration has contributed to lifting the regional economies in the Baltics. The project focused on labour market integration and migration, knowledge transfer and knowledge development, foreign direct investment and capital mobility, and trade in goods and services.
The study investigated how Norwegian-Baltic trade affects firm productivity, profitability, factor allocation, employment creation, wage levels and inequalities. The results of the project highlighted the problems and weak points in the Nordic – Baltic cooperation. In the same way, knowling the problems, the challenges and opportunities, and the potentials of business cooperation might be determined. Thus, the results provided the situation that immigrants from Baltic States to Nordic countries face with, the addition, the effect of consequences of COVID-19 has been explored. Further, the research has clarified the situation in the technology and knowledge transfer within Nordic-Baltic region. The results were more disappointing rather than expected. The findings showed that there is a weak link regarding technology and knowledge transfer. Thus, the stakeholders and policy makers should focus on the strengthening the collaboration for gaining greater benefits from technology and knowledge transfer.
The team of concorsium researchers additionally focused on blue economy issues. Thus, it is opportunity to solve lack of labour force due to aging population. Thus, this point should be important for the policy makers, to consider how to promote and exploit blue economy. Additionally, during the whole project time, great volume set of primary and secondary various data has been collected and published. It is available for public and for further research.
Concluding, the findings of the LIFT-project have increased awareness of the potential of business and political cooperation between the Nordic and the Baltic countries. This knowledge will be useful to stakeholders responsible for policies and involved in activities aimed at facilitating cooperation, spillover of knowledge and innovations, and further integration of the region in terms of investment, trade, and labour.
Summary of bilateral results
The development of bilateral and multilateral cooperation among project participants aligns closely with the objectives of the programme. The project team comprised researchers from diverse scientific disciplines, including economics, management, sociology, and policy, each contributing specialized skills in quantitative data analysis and qualitative research methods. This collaborative approach was essential in achieving the project`s ambitious targets. Through joint efforts researchers from partner institutions contributed valuable insights, enriching draft articles and facilitating comparative analysis. Regular communication via email, monthly meetings, and project conferences fostered collaboration and knowledge exchange among consortium members.The international and interdisciplinary nature of the team that brings together competencies from various related subjects creates good conditions for applying for further EU-level project funding as soon as a fitting call is published.