After Finland joined the euro zone in 1995, FDI flows were increasing steadily. However, in the context of the international financial crisis of 2008 and the following euro zone crisis, FDI inflow to Finland decreased dramatically. Whether they will recover in 2014 remains to be seen.
The country’s strengths include: its reputation as having the least amount of corruption in the world, its competitiveness, its strategic position at the center of a dynamic zone formed by Russia, Scandinavia and the Baltic countries, and its economic orientation towards high technology, research and development.
For more information, refer to the Invest in Finland website.
|Index of Transaction Transparency*||6.0||6.0||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||5.0||9.0||5.0|
|Index of Shareholders’ Power***||7.0||9.0||5.0|
|Index of Investor Protection****||5.7||6.1||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||2,550||4,153||-1,065|
|FDI Stock (million USD)||89,232||96,646||101,307|
|Performance Index*, Ranking on 181 Economies||122||-||-|
|Potential Index**, Ranking on 177 Economies||44||-||-|
|Number of Greenfield Investments***||83||110||113|
|FDI Inwards (in % of GFCF****)||5.0||8.6||-2.1|
|FDI Stock (in % of GDP)||34.0||39.1||39.4|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
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Last Updates: February 2015