The Impact of Regulation on International Investment in Finland
The Impact of Regulation on International Investment in Finland examines what drives FDI into Finland and which domestic regulatory aspects may discourage foreign investment. The report analyses trends in FDI flows towards Finland and other Nordic-Baltic countries and discusses the benefits of foreign investment for the Finnish economy. It provides a comparative overview of the regulatory frameworks in force in Finland and its Nordic-Baltic peers, outlining both economy-wide and sector-specific findings, and explores how changes in these regulatory frameworks are linked to changes in FDI inflows in the region. Foreign investors’ views on Finland’s business environment complement these findings. The report underlines potential areas for reform and suggests policy actions that could further improve Finland’s investment climate and contribute to attracting and retaining more FDI, while also strengthening its positive impact.
The impact of regulatory barriers on FDI into the Nordic-Baltic region
This chapter explores the possible links between regulatory restrictions on foreign investment and FDI flows through an econometric analysis of transaction-level data on cross-border Mergers & Acquisitions and greenfield investment projects into Finland and other Nordic-Baltic economies. The regulatory factors considered include economy-wide and sector-specific settings, regulatory differences between the host and the country of origin, restrictions to digital trade, customs efficiency and corporate tax rates. By examining patterns of foreign transactions, this chapter evaluates to what extent differences in the regulatory landscape across the Nordic-Baltic region are linked to the probability that foreign investors establish a presence in a given country.
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