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This paper provides empirical evidences from the Baltic States on the relationship between technology and trades. In this study, regression and correlation analysis were employed an attempt to reveal the relationship between technology index and net-export coefficient, as well as the relationship between technology index and import coefficient. In this research, technology level was measured by technology index, while trades included of domestic and foreign trades; export and import. The data used for this study were collected from world input-output databases of Estonia, Latvia and Lithuania for the period 2000, 2005, 2010, and 2014. The findings remarked that the relationship between technology and domestic trade was positive and statistically significant. The result of the study implies that the higher was the technology index leads to the higher domestic transaction. Furthermore, relationship between technology and net-export was unpredictable. In year 2000, data from Estonia and Latvia showed that the relationship between variables was negative and in other years of the study, the relationship was positive. However, the relationship between variables was not statistically significant. Lastly, the relationship between technology and import was negative and statistically significant. It implies that the higher was technology index, will have a consequence the smaller was import.

Are Trades Related to Technology? Evidences From The Baltic States: Estonia, Latvia and Lithuania