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The Folklore of Finland's Eastern Trade

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  • Pekka Sutela

Abstract

Until the end of 1990, Finland was the only developed market economy to trade with the USSR on a bilateral clearing basis. It was also, so it is widely believed in Finland, the only one among the neighbours of the Soviet Union to benefit greatly economically from this trade. This article does not aim to clarify whether such beliefs are well grounded in fact, but rather to look at the beliefs themselves. To do that, we examine a large amount of so-called grey literature: memoirs, biographies and fiction, but not research proper in economics or economic history. Belief in the benefits of Eastern Trade has been widely held in Finland, but there have always been sceptics as well. The materials used offer many insights, for instance, into the character of Eastern Trade, negotiations procedures, pricing and quality issues, relations between the counterparts, as well as the implications of COCOM restrictions of trade by a neutral country.

Suggested Citation

  • Pekka Sutela, 2007. "The Folklore of Finland's Eastern Trade," Europe-Asia Studies, Taylor & Francis Journals, vol. 59(1), pages 137-162.
    • Handle: RePEc:taf:ceasxx:v:59:y:2007:i:1:p:137-162
    DOI: 10.1080/09668130601072746
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    Cited by:

    1. Yuriy Gorodnichenko & Enrique G. Mendoza & Linda L. Tesar, 2012. "The Finnish Great Depression: From Russia with Love," American Economic Review, American Economic Association, vol. 102(4), pages 1619-1644, June.

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