The slowdown in Finnish productivity growth
Causes and consequences
This report analyses the trends in Finnish productivity growth over the 2000s and
2010s. It describes its key features, makes comparisons to a benchmark of 16 OECD
countries, and studies the causes of its sudden and prolonged slowdown which began
at the end of the 2000s. The analysis focuses on the role of two contemporaneous demand
shocks that hit the Finnish economy: the Nokia crisis and the Great Trade Collapse
Matching detailed firm-based information on structural characteristics of productivity
growth with global input-output tables and National Accounts data, the report highlights
how the prolonged drop in demand from the domestic computer and electronics sector
may have induced a persistent drag on Finnish productivity growth.
The report concludes with policy implications to strengthen Finnish resilience to
idiosyncratic shocks to key sectors or large firms, while supporting long-term productivity
growth and competitiveness.
Available from February 16, 2023
In series:OECD Science, Technology and Industry Policy Papersview more titles