Assessing the Role of Latvia's Participation in Indo-EU Value Chains

Abstract

The global trade scenario is fast changing with complexities involving multi-nationals and value chains. Likewise, EU Member States trade has been more intra-EU than extra-EU; however, the Member States have now started looking at extra-EU trade partners. A study of assessment of Latvia's trade potential with EU Member States shows that it has reached high levels of trade with its neighbouring countries and needs to look beyond its present trade partners. Utilising basic gravity theory this article tries to explain the possibility of creation of trade by Latvia as a Member State of the EU, with special focus on the participation of Latvia in Indo-EU Value Chains (Indo-EUVCs) and the possible role Latvia can play in future.