This 2008 edition of OECD's periodic survey of Finland's economy opens with a chapter examining how Finland can get the most out of Globalisation. It then reviews recent economic performance and examines key economic issues Finland faces including tax policy, the municipal services sector, a better functioning labour market, making tertiary education as good as compulsory education, and accessing and integrating foreign labour.
Table of contents:
Executive Summary Assessment and Recommendations Chapter 1. Getting the Most Out of Globalisation -The Benefits and Challenges of Globalisation -Insufficient Diversification? -The Stock of Inward FDI is Below the OECD Average -Outward FDI is Stronger -Globalisation and the Nordic Model -Significant Challenges Remain -Annex 1.A1. Progress in Structural Reform Chapter 2. Recent Macroeconomic Performance and Fiscal Sustainability -Recent Macroeconomic Performance Has Been Good -But Major Challenges in the Labour Market Remain -Fiscal Indicators Are Positive in the Long-Term -But Long-Term Fiscal Sustainability Remains a Concern Chapter 3. Setting Tax Policies that Support the Nordic Model -Taxation and the Nordic Model -The Dual Income Tax System as a Response to Globalisation -How to Optimise the Tax Mix -Labour Taxation is Too High -Municipal Taxation Needs Refining -The VAT Base Could Be Broader -Corporate and Capital Income Taxation Annex 3.A1. The Tax System in Brief Chapter 4. Reforming the Municipal Tax Sector -Strategies to Raise Productivity Growth in Municipal Services -The Central Government Should Ensure Better Framework Conditions Chapter 5. A Better Functioning Labour Market -Globalisation and Structural Change -Wage Setting Remains Excessively Rigid -Labour Matching Problems and Skill Shortages -The Nordic Model Requires Higher Employment Annex 5.A1. Part-Time Employment, the Employment Rate, and Total Hours Worked in the OECD Chapter 6. Making Tertiary Education as Good as Compulsory Education -The Finnish Education System and the Knowledge Economy -Delays in the Transition to Tertiary Education are a Major Source of Inefficiency -Long Study Times also Contribute to the Late Labour Market Availability of University Graduates -The Supply-Based Systems Has Led to Inefficiencies -Tuition Fees Could Help to Raise the Quality of Education and Improve Efficiency -Increasing Numbers of Doctoral Degrees Raise Questions about Quality Chapter 7. Accessing and Integrating Foreign Labour -Foreign-Born Workers in Finland -Meeting Skill Shortages -Attracting and Keeping Foreign-Born Students Glossary