Arbeitspapier

Quality-adjusted similarity of EU-countries' export structure

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.

Language
Englisch

Bibliographic citation
Series: ETLA Discussion Papers ; No. 1227

Classification
Wirtschaft
Empirical Studies of Trade
Economic Integration
Subject
exports
similarity
quality

Event
Geistige Schöpfung
(who)
Kaitila, Ville
Event
Veröffentlichung
(who)
The Research Institute of the Finnish Economy (ETLA)
(where)
Helsinki
(when)
2010

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Kaitila, Ville
  • The Research Institute of the Finnish Economy (ETLA)

Time of origin

  • 2010

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