Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/44559 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
ETLA Discussion Papers No. 1227
Publisher: 
The Research Institute of the Finnish Economy (ETLA), Helsinki
Abstract: 
We propose a new way to measure the extent to which countries compete in their exports. We augment the similarity index proposed by Finger and Kreinin (1979) with product quality. Quality is measured using unit export prices in the tradition of the horizontal/vertical intra-industry trade literature. We analyse the EU27 countries' export structures using 1) overall similarity à la Finger and Kreinin, 2) same-quality similarity, and 3) quality-adjusted similarity that combines the first two measures. We find that the similarity of the export structures of the new member countries and the cohesion countries vis-à-vis the non-cohesion EU15 countries has increased, but that there remains a divide between them especially in terms of same-quality exports.
Subjects: 
exports
similarity
quality
JEL: 
F14
F15
Document Type: 
Working Paper

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