The Nature of the Finnish Competitiveness Problem

Abstract

We assess Finland’s competitiveness in the light of various, mainly short-term indicators. It turns out that the weak export market performance over the last few years is linked to the deterioration of profitability of production in Finland. A better export and employment performance requires a decline of relative unit labour costs and an improvement of business profitability. Wage moderation is necessary for this to happen. On the other hand, the determinants of Finland’s long-term competitiveness are quite good and maintaining and developing them should remain a key element of economic policy also in the future.

Publication info

Series
ETLA Raportit - Reports 9
Date
11.04.2013
Keywords
Competitiveness, Profitability, Productivity, Export performance, Employment
ISSN
2323-2447, 2323-2455 (Pdf)
JEL
F40, E25, E64, J31, O47
Pages
26
Language
Finnish