Business regulation and international economics

We do research on business taxation, industrial policy and subsidies and the impact of globalization on the structure of the Finnish economy.

Our business taxation research projects assess the impact of implemented and potential tax changes on the behaviour of firms and entrepreneurs. Industrial policy research assesses in particular the effectiveness of research and development subsidies. As regards the international economy, we research the impact of economic integration and the growth in trade on the Finnish economy and labour market.

The subjects researched in our ongoing projects include:

  • value-added taxation: we research how the VAT threshold affects firms’ behaviour and how changes in VAT rates affect service sector firms, and prices and demand for their goods;
  • the mechanisms of the shadow economy and tax planning questions;
  • how economic integration and the growth in trade have affected individuals in the labour market in Finland;
  • how exports and imports of services have affected the Finnish economy.

As regards services exports, VATT is currently researching the value added accruing to Finland. We are also looking into the extent to which Finnish firms are substituting their own production with imported services, and how this is affecting demand for labour and wages in Finland.

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