Industrial and trade dynamics in the Baltic Sea region - the last two waves of European Union enlargement from a historic perspective

The aim of this paper is to review the dynamics of economic development in the Baltic Sea region surrounding the last two waves of European Union enlargement, assessing the quality of economic change and prospects for future development. We observe the emergence of a closely integrated economic system in the Baltic Sea region, and notice that the Nordic countries and Germany specialise in "good trade" while the Baltic States and Poland have been increasingly specialising in "bad trade", not conductive for a sustained longer-term increase of living standards.