Finnish firms utilise the rapidly growing markets of the new EU Member States (KTM)
A study published in the publication series of the Research Institute of the Finnish Economy (ETLA) examines the effects of EU enlargement on the strategies of Finnish firms, especially the repercussions of the tightening location competition, which has recently been much to the fore.
These were mapped out by comparing cost and productivity differences, analysing the tax competition and changes on the labour market, and particularly by sending out a questionnaire to Finnish firms about their plans concerning the EU enlargement.
The results show that firms are still willing to utilise the expanding markets of the new EU Member States with the help of exports, as well as lower production costs in the form of direct investments. However, the growth of exports and the increased investments directed to the new Member States support each other. The risks of the enlargement can be controlled, if the adaptation capability of economy remains good and cost development in hand, and if a swift rise in productivity can be maintained in Finland.
The authors of the study are Research Director, Lecturer Kari Alho; Researcher, Lic. Soc. Sc. Ville Kaitila; and Head of Unit, D. Soc. Sc. Markku Kotilainen. The study was financed by the Ministry of Trade and Industry.
Alho, Kari, Kaitila, Ville, Kotilainen, Markku: EU:n laajenemisen vaikutukset suomalaisten yritysten strategioihin. Helsinki: ETLA, the Research Institute of the Finnish Economy, 2004, 86 p. In finnish. (Discussion Papers, ISSN 0781-6847; No. 885).