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Globalisaatio Suomen vanhojen teollisuuspaikkakuntien kehityksen muovaajana - Tapaustutkimus Varkauden kaupungista


  • Lovio, Raimo
  • Jääskeläinen, Jari
  • Laurila, Juha
  • Lilja, Kari


The paper summarizes the results of a follow-up study on the effects of globalization in an old industrial town in eastern Finland called Varkaus. Until the 1980s, the town was dominated by one large Finnish company. Since then, the company has sold all its businesses in the town, and almost all have been acquired by foreign companies. The analysis reveals that in the first phase, during the 1990s foreign ownership has primarily had a positive impact on the development of the business units acquired although there were some problems between local business units and their new owners. During the more recent years the effects of globalization have changed towards more negative direction. This is not because of foreign ownership but due to changes in the competitiveness of Finland and the town as business environment. Today, Finnish forest multinationals invest in Russia, China and in the South America. Instead, in Finland and in Varkaus some old paper machines have been closed. In addition, due to globalization pressure firms in Finland and Varkaus try to develop new high-tech products. For high-tech product development old industrial towns are not the best business environment and therefore in Varkaus the major automation company has decided to move its facilities to a bigger university city in Finland.

Suggested Citation

  • Lovio, Raimo & Jääskeläinen, Jari & Laurila, Juha & Lilja, Kari, 2006. "Globalisaatio Suomen vanhojen teollisuuspaikkakuntien kehityksen muovaajana - Tapaustutkimus Varkauden kaupungista," Discussion Papers 1035, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1035

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    References listed on IDEAS

    1. Kaitila, Ville, 2001. "Accession countries' comparative advantage in the internal market : A trade and factor analysis," BOFIT Discussion Papers 3/2001, Bank of Finland, Institute for Economies in Transition.
    2. Kaitila, Ville, 2004. "The Factor Intensity of Accession and EU15 Countries' Comparative Advantage in the Internal Market," Discussion Papers 925, The Research Institute of the Finnish Economy.
    3. Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers.
    4. Algieri, Bernadina, 2004. "Trade specialisation patterns : the case of Russia," BOFIT Discussion Papers 19/2004, Bank of Finland, Institute for Economies in Transition.
    5. Ville Kaitila, 2002. "Accession Countries’ Comparative Advantage in the Internal," International Trade 0209001, EconWPA.
    6. Kaitila, Ville & WidgrÉn, Mika, 1999. "Revealed Comparative Advantage in Trade between the European Union and the Baltic States," Discussion Papers 697, The Research Institute of the Finnish Economy.
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    globalization; foreign ownership; old industrial towns.;

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