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The Role of the Largest Companies and Their Value Chains in the Economy

Author

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  • Ali-Yrkkö, Jyrki
  • Seppälä, Timo
  • Mattila, Juri

Abstract

This report analyzes the role of the largest companies in the Finnish economy. According to the results, the ten largest companies in terms of their value added together produce 7,6 % of the Finnish GDP. In addition, these companies generate notable multiplicative effects in the economy. According to the findings, the productivity and the growth rates of the ten largest companies clearly surpass the economy average. In this study, it was also analyzed what kinds of macroeconomic effects will generated by Metsä Fibre’s investment into their new bioproduct factory in Äänekoski, Finland. The calculations were conducted for the construction phase and the production phase individually. According to these analyses, the construction phase alone will generate a positive impact on employment reaching thousands of man-years. However, the true significance of the investment will only become evident in the production phase, since not all investments of equal scale produce similar macroeconomic effects. Besides the characteristics of the examined industries, the size of these effects also depends on which countries acquisitions are made from.

Suggested Citation

  • Ali-Yrkkö, Jyrki & Seppälä, Timo & Mattila, Juri, 2016. "The Role of the Largest Companies and Their Value Chains in the Economy," ETLA Reports 53, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:53
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    File URL: http://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-53.pdf
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    Citations

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    Cited by:

    1. Tero Kuusi & Martti Kulvik & Juha-Matti Junnonen, 2022. "Productivity Growth in Construction Value Chains," International Productivity Monitor, Centre for the Study of Living Standards, vol. 42, pages 3-32, Spring.
    2. Ali-Yrkkö, Jyrki & Mattila, Juri & Seppälä, Timo, 2017. "Estonia in Global Value Chains," ETLA Reports 69, The Research Institute of the Finnish Economy.
    3. Mattila, Juri & Seppälä, Timo & Salakka, Kaisa, 2021. "The Little Engines That Could – Game Industry Platforms and the New Drivers of Digitalization," ETLA Brief 101, The Research Institute of the Finnish Economy.

    More about this item

    Keywords

    Large; Largest; Companies; Firms; GDP; Productivity; Gross domestic product; Concentration; Multiplier effect; Investment; Pulp; Äänekoski; Group; Granular; Concentration;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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