Finland China trade : What factors have been driving the trade

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http://urn.fi/URN:NBN:fi:hulib-201910093611
Title: Finland China trade : What factors have been driving the trade
Author: Dahlberg, Kasper
Contributor: University of Helsinki, Faculty of Arts, Department of World Cultures 2010-2017
Publisher: Helsingin yliopisto
Date: 2019
Language: eng
URI: http://urn.fi/URN:NBN:fi:hulib-201910093611
http://hdl.handle.net/10138/306169
Thesis level: master's thesis
Discipline: Itä‑Aasian tutkimus
East Asian Studies
Östasienforskning
Abstract: The Master’s thesis is about Finland China trade and what factors have been driving it. The research question of the thesis is to see what the leading factors have been to drive the trade and its growth between China and Finland. This is done both as a literature study of the subject as well as an econometric study based on the economic gravitational model for trade. The investigation is done on factor like macroeconomic factors of like GDP of the countries, as well as politics, history, trade agreements, bilateral relations and structure in the trade between the two countries. The main findings in the thesis is that GDP growth of Finland and China effects strongly positively the trade floe between the countries. Additionally, concerning the access of China into the WTO it had statistically a positive effect on the Chinese exports to Finland, while Finnish exports to China did not have the same positive effect, thanks to Chinese access into WTO. Concerning the progresses of trade between the countries it can be seen from first being part just of bilateral trade relations between the two countries of different goods, to more develop into investment of booth countries in each other’s. Regarding the trade of goods, that of exports form Finnish has been more shift from before being exports of higher technology goods of electronic machines and other manufactured goods and machines to more a mix of raw material exports as well as high technology goods. In case of Chinese exports, they have been evolving from low level of goods like textiles and simple manufactured good in 1990s to current day of exports of higher level of especially electrical machinery and machinery and mechanical appliances being of importance, while textiles and simple manufactured goods lost shares in exports. Finland and China have had kind of good political relations with each other’s, by Finland begging its political relations with recognizing China in 1950 and having opening embassy in Beijing in the year of 1952. Furthermore, Finland has had more a policy of most non-interference by its higher political officials and companies into Chinas internal more sensitive affairs, and more promoting good trade and political relations between the two countries.
Subject: China
Finland
trade
trade policy
gravitational model
China Finland relations
Chinese investment
trade agreements


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