Fluctuations in trade between Finland and the Soviet Union

The study examines Finland’s export demand and its role in national economic cyclical fluctuations.

Finland’s cyclical fluctuations are strong by international comparison, which is largely due to dependence on export demand. The fluctuation in Western exports is particularly sharp owing to the one-sided structure of exports — over half consist of wood processing industry products — and the strong variations in inventory demand.

Exports to the Soviet Union, just under a quarter of total exports, differ significantly in character from Western exports. They are based on a framework of intergovernmental agreements with five-year agreements and annual commodity exchange protocols, which means that their fluctuations cannot be explained solely by external demand. The actions of Finnish companies and the public authorities play a decisive role in the development of trade. Due to the bilateralism principle, the development of exports and imports are also closely linked to one another. (AI translation)

• ISSN: 0358-5980
• ISBN: 951-9281-05-3