ENThe main objective of this study is to test empirically for a positive relationship between productivity and the probability of involvement in export activities, postulated by the latest strand of trade theory that emphasizes the role of firm heterogeneity initiated by the theoretical work of Mclitz (2003). To verify the postulated relationship the probit model was employed which was estimated using the firm-level data for the three Baltic states: Estonia, Lithuania and Latvia. The data was collected within the framework of a joint project BEEPS which was run by the European Bank for Reconstruction and Development and the World Bank. Our empirical stilts confirm the presence of a positive relationship between firm productivity and the probability of exporting in the case of firms from the Baltic countries. The obtained results are therefore consistent with the results of previous studies for other countries in the European Union.