The Role of the Largest Companies and Their Value Chains in the Economy

This report analyzes the role of the largest companies in the Finnish economy. According to the results, the ten largest companies in terms of their value added together produce 7,6 % of the Finnish GDP. In addition, these companies generate notable multiplicative effects in the economy. According to the findings, the productivity and the growth rates of the ten largest companies clearly surpass the economy average. In this study, it was also analyzed what kinds of macroeconomic effects will generated by Metsä Fibre’s investment into their new bioproduct factory in Äänekoski, Finland. The calculations were conducted for the construction phase and the production phase individually. According to these analyses, the construction phase alone will generate a positive impact on employment reaching thousands of man-years. However, the true significance of the investment will only become evident in the production phase, since not all investments of equal scale produce similar macroeconomic effects. Besides the characteristics of the examined industries, the size of these effects also depends on which countries acquisitions are made from.

Publication info

Series
ETLA Raportit - Reports 53
Date
18.05.2016
Keywords
Large, largest, companies, firms, GDP, productivity, gross domestic product, concentration, multiplier effect, investment, pulp, Äänekoski, group, granular, concentration
ISSN
2323-2447 (print), 2323-2455 (pdf)
Jel
F23, L25, E22, M21, L11
Pages
37
Price
15 €
Availability
Available
Language
Finnish
Attachments
4