The Impact of Regulation on International Investment in Finland

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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.


Finland’s domestic policy and regulatory setting

This chapter provides a comparative overview of policies that might affect FDI, benchmarking Finland’s regulatory framework against those of other Nordic-Baltic countries. It first assesses at-the-border and behind-the-border regulation applicable to all sectors of the economy that might influence foreign investment decisions and affect market entry of foreign-owned firms, as well as their operations in Finland. This assessment is complemented by an evaluation of regulatory aspects that might have an effect on investment, trade and competition in selected services sectors: ICT, construction, transport, logistics, courier, distribution and professional services. The chapter also discusses how similar Finland’s regulatory framework is to those of its neighbouring trade and investment partners and to what extent barriers are lower for investors from within the EEA due to regulatory harmonisation within the Single Market.


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