The Dynamic Relationship of the GDP <i>Per capita</i> Among the Three Baltic States (1990-2021)

The geographical situation in Europe of Estonia, Latvia and Lithuania, the Three Baltic States, forms an optimal environment for study economic relationships present among them. global magnitudes are very similar three with a little difference favor Lithuania regarding population extension. States joined European Union at same time, May 1, 2004. A vector autoregressive model, VAR relating economies their temporal evolution is appropriate model this study. With intervention lags, it possible to formulate dynamical relationship these percentage growth change respective gdp per capita. Our attention directed rate period 1990-2020. estimated VAR(2) shows that capita dynamically related lagged changes Estonia direct way, more complex dynamic other two as explained Conclusion. This supplemented Impulse Response Analysis Forecast Error Variance Decomposition measure effects random impulses model.