What if growth in exports and productivity were actually higher?

Abstract

Finland's export performance has been weak in the 2010s and has lagged behind growth in the export markets. Structural change in manufacturing, subdued demand for capital goods and intermediate goods in the global economy and the geographical composition of Finnish exports have weakened the trend in exports in structural terms. In addition, as investment in new products and production capacity remained low in the recession that followed the financial crisis and costs rose at a rapid pace, Finland's cost-competitiveness weakened notably.