Shifting Forces of Trade – What Does Geopolitical Reordering Mean for Finland?

Abstract

The gravity model is one of the most widely used tools in international economics, explaining trade between countries through their mutual “attraction”, determined by economic size and geographical distance. In an era defined by geopolitical tensions, the pandemic, and disruptions to supply chains, the gravity model helps reveal how global trade is fragmenting and reorienting toward regional blocs. From Finland’s perspective, the model provides a valuable means of evaluating trade vulnerability and adaptive capacity: roughly one quarter of Finland’s intermediate goods imports depend on countries whose supply reliability is geopolitically uncertain. This perspective is crucial for understanding how Finland can strengthen its trade resilience and strategic autonomy in a rapidly changing global economy.

Information om publikationen

Forskningsgrupp
Makroekonomi och den offentliga ekonomin
Serie
ETLA Muistio - ETLA Brief 167
Datum
12.11.2025
Nyckelord
Geoeconomics, Industrial policy, Trade policy, National security
ISSN
2323-2463
JEL
F13, O25, F52
Sidor
10
Språk
Finska