Capital relocation: the internationalisation of Finnish firms and income policy

Other Publications Studies 98 Ritva Pitkänen, Pekka Sauramo

In the past ten years, the business operations of Finnish firms have expanded abroad very rapidly. Despite significantly larger financial resources than before, Finnish firms have invested relatively little in Finland and have instead transferred a substantial share of their financial resources outside Finland’s borders.

In the study “Capital Relocation: The Internationalisation of Finnish Firms and Income Policy” by Ritva Pitkänen and Pekka Sauramo, it is estimated that in manufacturing, approximately 40 percent of firms’ available funds—around EUR 40 billion—were used for foreign investments during the period 1995–2003. Roughly the same amount was used for fixed (gross) investments in Finland that increase production capacity.

In the service sector, the share transferred abroad was lower but still notably significant. (AI translation)

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