Opportunities and challenges for Finland to become a regional trade hub : research based analysis
Wimalasekera, Panapage Don Imal Nilendra Mario (2025)
2025
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025121737522
https://urn.fi/URN:NBN:fi:amk-2025121737522
Tiivistelmä
Due to changing geopolitical circumstances, advancements in digital logistics, and a growing focus on sustainable supply chains, Finland's potential to become a regional trade hub has received renewed relevance. This thesis investigates the potential and challenges affecting Finland’s capacity to reinforce its role inside the Baltic and Nordic trade climate. The study takes a qualitative, descriptive approach and relies primarily on secondary data gathered from international organizations, Finnish authorities, research papers, and industry reports. The conceptual structure draws on ancient and modern trade ideas, including Ricardo’s comparative advantage, Krugman’s New Trade Theory, Porter’s Diamond Model, and logistics hub development frameworks.
The findings indicate that Finland has several major opportunities, including sophisticated digital logistics systems, effective port operations, robust export industries, EU cooperation, leadership in green transition initiatives, and growing strategic importance in the Nordic Baltic area. However, Finland also faces significant structural constraints such as geographical remoteness, greater logistical expenses, smaller economies of scale, fragmented port structure, constrained air cargo capability, and the loss of eastward transit amid changes in geopolitics. comparison with major European hubs such as Rotterdam, Hamburg, and Antwerp suggests that Finland is unable to replicate volume based hub models but may distinguish itself through specialized, technology driven, and environmentally sustainable logistics capabilities.
According to the research, Finland's best route to hub development is to establish itself as a high value, digital, and environmentally friendly logistics hub in Northern Europe. It will be crucial to make strategic investments in cross border cooperation, sustainability, multimodal connectivity, and innovation. The study adds to understanding trade hub development in peripheral economies and gives policy suggestions for increasing Finland’s competitiveness within the developing European trade environment.
The findings indicate that Finland has several major opportunities, including sophisticated digital logistics systems, effective port operations, robust export industries, EU cooperation, leadership in green transition initiatives, and growing strategic importance in the Nordic Baltic area. However, Finland also faces significant structural constraints such as geographical remoteness, greater logistical expenses, smaller economies of scale, fragmented port structure, constrained air cargo capability, and the loss of eastward transit amid changes in geopolitics. comparison with major European hubs such as Rotterdam, Hamburg, and Antwerp suggests that Finland is unable to replicate volume based hub models but may distinguish itself through specialized, technology driven, and environmentally sustainable logistics capabilities.
According to the research, Finland's best route to hub development is to establish itself as a high value, digital, and environmentally friendly logistics hub in Northern Europe. It will be crucial to make strategic investments in cross border cooperation, sustainability, multimodal connectivity, and innovation. The study adds to understanding trade hub development in peripheral economies and gives policy suggestions for increasing Finland’s competitiveness within the developing European trade environment.