Abstract
The paper combines the theories of gravity modelling and the economics of networks and empirically analyzes the development of the export network of the three Baltic countries after the collapse of the Soviet Union. We investigate which factors influenced the spread of the export networks of the Baltic countries and if the influence of any of these factors differed for Lithuania, Latvia and Estonia. We find that the network effects are important for the development of the extensive trade margin. The most important factors are the history of exporting, the distance, the ability to understand each other and the stock of migrants between the countries. Results suggest that there were no major differences between any of the countries analyzed.
