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What’s next for Finland? : a broad inquiry into strengths and weaknesses of the economy of Finland

Show simple item record 2020-12-28T07:16:29Z 2020-12-28T07:16:29Z 2020-12-28
dc.title What’s next for Finland? : a broad inquiry into strengths and weaknesses of the economy of Finland en
ethesis.discipline Kansantaloustiede fi
ethesis.discipline Economics en
ethesis.discipline Nationalekonomi sv
ethesis.department Politiikan ja talouden tutkimuksen laitos fi
ethesis.department Department of Political and Economic Studies (2010-2017) en
ethesis.department Institutionen för politik och ekonomi sv
ethesis.faculty Valtiotieteellinen tiedekunta fi
ethesis.faculty Faculty of Social Sciences en
ethesis.faculty Statsvetenskapliga fakulteten sv
ethesis.faculty.URI Helsingin yliopisto fi University of Helsinki en Helsingfors universitet sv
dct.creator Perttula, Paavo
dct.issued 2020
dct.language.ISO639-2 eng
dct.abstract Finnish economy performed remarkably well for decades after the war. Finland achieved an enviable standard of living with a combination of free-market capitalism and extensive welfare state. The long period of growth, which was temporarily disrupted by the 1990s depression, culminated in the spectacular rise of Nokia that pushed the entire country forward. Eventually the period of growth ended in global financial crisis of 2007-2008. While Finland’s neighbors were able to bounce back in few years, it took a decade for Finland to recover, and the effects of the prolonged recovery are felt yet today. This dissertation focusses on identifying the underlying reasons to Finland’s poor performance in recent years. The research question in this dissertation is broad: to identify significant trends and phenomena that cross sector boundaries and cannot be described by a single model and a narrow approach. The approach is to systematically review well established theories, sector by sector, and then present cross-country evidence to shed light on Finland’s economy. A lot of emphasize is on Schumpeterian endogenous growth theory, which explains why firms invest in research and development. Schumpeterian theory is tested with a panel data regression, using sector-level Product Market Competition data and data on triadic patent presentations. Data used in this dissertation is collected from public sources, including Statistics Finland, Eurostat, OECD, UN, ILO, WIPO and The World Bank. A Statistically significant and positive relationship between PMC and rate of innovation was found to exist using Finnish data for 2013 and 2017. As PMC has declined in key industries in Finland, it means that firms’ incentives to innovate have decreased. This coincides with austerity measures that have impacted public sector R&D spending. These factors, among with others, have contributed to Total Factor Productivity decline, which is worrisome. Other notable findings include Finland’s post-crisis growth in private demand, that substantially contributed to Finland’s recovery. However, much of that growth comes from spending on housing, water, electricity, gas and other fuels, that is related to steep increase in electricity transmission tariffs. In other words, increased spending reduced welfare. As overall conclusion, Finland needs a more strategic approach to economic policy. Finland would benefit from focusing on policies that spur innovation and generate growth, namely, stronger focus on market economy and R&D. Deregulation, supporting the market economy, and lowering the obstacles that stand in the way of immigration of skilled workers, are examples of those policies. en
dct.subject Finland’s economy
dct.subject Schumpeterian growth theory
dct.subject Product market competition
dct.subject R&D
dct.subject Labor productivity
dct.subject Total factor productivity
dct.subject Consumption theory
dct.subject Foreign trade
dct.language en
ethesis.language englanti fi
ethesis.language English en
ethesis.language engelska sv
ethesis.supervisor Ripatti, Antti
ethesis.thesistype pro gradu -tutkielmat fi
ethesis.thesistype master's thesis en
ethesis.thesistype pro gradu-avhandlingar sv
dct.identifier.ethesis E-thesisID:4100a271-9993-482f-8199-3174135c2211
dct.subject.YSOFI talouskasvu und
dct.subject.YSOFI makrotaloustiede und
dct.subject.YSOFI työmarkkinat und
dct.subject.YSOFI ulkomaankauppa und
dct.subject.YSOFI luovatuho und
dct.subject.YSOFI innovaatiot und
dct.subject.YSOFI innovaatiopolitiikka und
dct.subject.YSOFI tuotemarkkinakilpailu und
dct.subject.YSOFI ulkomaankauppa und
dct.subject.YSOFI kokonaistuottavuus und
dct.subject.YSOFI hyvinvointi und
ethesis-internal.timestamp.reviewStep 2020-11-16 09:30:49:328
dct.identifier.urn URN:NBN:fi:hulib-202012285522
dc.type.dcmitype Text
ethesis.facultystudyline.URI none
ethesis.mastersdegreeprogram.URI none

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