For a study of the experience of the BRO countries in reorienting their trade see Havrylyshyn and Al-Atrash (1998).
Furthermore, the likely impact of EU expected accession on Latvia’s productivity cannot be underestimated. See for example Havrylyshyn (1998).
This has been typical in Dutch Disease empirical literature. See for example the various studies in Gelb and associates (1988).
It is important to note that this methodology has two pitfalls. First, it is assumed that the equation is stable over time, so it can be used beyond the period in which it was estimated for. Second, the data used in the estimation suffer from important data problems especially in relation to estimates of purchasing power parity GDP.