Services, Vertical Linkages, and Development: The Case of the Baltic Countries

This article investigates structural changes and the role of services in final production in the economies of Baltic countries, following the vertically integrated sector approach to the input–output model. The analysis of the period 2000–2014 was conducted using the World Input–Output database. The results show significant differences in the technological intensity of manufacturing, in intersectoral links, and in the functional role of services in the economy. Although the Baltic countries have small economies, affected by common shocks, this area is far from homogeneous structurally. The results offer a case study of great interest for small emerging countries.