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The Finnish Developmental State and its Growth Regime

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  • Markus Jäntti
  • Juhana Vartiainen

Abstract

This paper reviews Finland's growth strategy in the postwar decades. Finland was able to initiate an impressive mobilization of resources during this period, reflected mostly in a high rate of capital accumulation for manufacturing industries. This was achieved by an unorthodox combination of dirigiste means and a basic commitment to upholding the market economy. The state acted as a net saver, and credit was rationed to productive investment outlays.

Suggested Citation

  • Markus Jäntti & Juhana Vartiainen, 2009. "The Finnish Developmental State and its Growth Regime," WIDER Working Paper Series RP2009-35, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2009-35
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    File URL: https://www.wider.unu.edu/sites/default/files/RP2009-35.pdf
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    References listed on IDEAS

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    1. Andersen, Torben M. & Holmström, Bengt & Honkapohja, Seppo & Korkman, Sixten & Söderström Hans Tson, & Vartiainen, Juhana, . "The Nordic Model. Embracing globalization and sharing risks," ETLA B, The Research Institute of the Finnish Economy, number 232, June.
    2. J.C.R. Dow, 1964. "The Management of the British Economy 1945-60," National Institute Economic Review, National Institute of Economic and Social Research, vol. 28(1), pages 74-74, May.
    3. Juhana Vartiainen & Anders Vredin, 1994. "Finnish monetary policy in the credit rationing era," Finnish Economic Papers, Finnish Economic Association, vol. 7(1), pages 42-55, Spring.
    4. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
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    Cited by:

    1. Notermans Ton, 2015. "The EU's Convergence Dilemma," TalTech Journal of European Studies, Sciendo, vol. 5(1), pages 36-55, February.

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