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This study applies an evolutionary approach to examine how economic crises and other factors shape economic diversification in the Baltic States. Using a logit model, new specialization entries in export portfolios from 1995 to 2022 are analyzed. The results show that the probability of market entry in related products increases significantly during a downturn. The Baltic economies also diversify into more complex, less-related products, suggesting a break from path dependency. Greater capital intensity and public investment in research and development foster diversification, while global export market size constrains it, highlighting barriers to entering major export markets.
Dzemydaitė et al. (Sat,) studied this question.