Peter Cornelius, Jonas Cicinskas, and Dalia Treigiené
INTERNATIONAL MONETARY FUND
The reintegration into the world economy has been an integral part of Lithuania’s transformation process. Trade policy reform has been assigned a key role, aiming at opening up the economy and redirecting foreign trade. This paper (i) analyzes the trade shock following the dissolution of the former Soviet Union; (ii) studies the political economy of trade reforms; (iii) evaluates Lithuania’s attempts to gain greater access to Western markets, in particular the European Union; and (iv) reviews the empirical evidence on redirecting foreign trade.