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...

There is a deep structural transformation going on In the Finnish electrical, electronics and IT services sector. The main reason is a major turning point in ICT due to diminishing production and employment in mobile telecom industry where large amount of high-skill jobs will disappear in the...

Economic convergence of the new member states (NMS) of the EU towards the old EU countries (EU-15), not only in terms of real income, but also in nominal terms, is of paramount importance for the whole of the EU. We build a dynamic CGE model, starting from the Balassa-Samuelson two-sector...