Market share of Finnish goods exports contracted sharply since 2000

Abstract

Finnish goods exports' share of world trade contracted by almost a third in the first decade of the new millennium. Market share was down across all Finland's most important export countries and product groups. One reason for the shrinking market share is the changing structure of world trade in response to the growing role of emerging economies. The declining market share cannot be explained by reference to the product and geographical breakdown of Finnish exports. Exports have been directed, particularly in regard to neighbouring countries, to markets where import demand has grown faster than import demand globally. According to the results of the present analysis, the diminishing market share is due not to an unfavourable export market and product composition, but to other factors such as weaker competitiveness.