dissertation in pdf-format - Aalto-yliopisto

Appendix 3
Firm population and workforce characteristics of Finland, Eastern
Finland and the Helsinki Region during 2002-2005
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Appendixes
Finland is one of the most rural of the OECD countries; ranking fifth in
terms of the proportion of territory covered by predominantly rural regions
(89%) and second in terms of both the proportion of the country’s
population they host (53% of a total population of around 5.3 million) and
proportion of GDP (gross domestic production) produced within these
regions (45%) (Rural Policy Reviews: Finland, OECD 2008).
Finland is strongly characterized as rural and peripheral both from the
European and national point of view. The differences, relative to EU-25
countries, are obvious in all regions. Based on Eurostat regional definitions
(NUTS criteria) almost 93% of Finland’s land area is classified as
predominantly rural, only 5% as intermediately rural and 2% as
predominantly urban. The only predominantly urban region is the Helsinki
region (which includes the capital city of Finland). (Source: Rural
development in the European Union – Statistical and Economic
information – Report 2007).
Jussila and Malinen (1993) note that rural areas in Finland differ from the
Western European countryside in three major respects: the population
density is much lower, the logistical distances are much longer and the
climate is colder (thus natural conditions, for agriculture for example, are
very challenging).
Nationally, the rural territory in Finland is heterogeneous along two
dimensions; the populations in Eastern and Northern regions are more
scattered and higher proportions of people live in rural municipalities than
in Southern and Western regions. Eastern and Northern parts of Finland
are the most sparsely inhabited regions in Europe, with less than 8
inhabitants per km2 (while the average population density in Finland is 17.3
inhabitants per km²). Furthermore, Eastern and Northern parts of the
country are characterised by high unemployment rates and negative net
migration, which has resulted in further reductions in the population
density and ageing of the population. In addition, concentration of
development generally occurs when people move from remote areas to
regional centres. (EU Fourth Cohesion Report 2007).
The Helsinki region hosts twice as many people as Eastern Finland in an
area that is an eighth of the size, implying that there are more market
opportunities, larger markets and more opportunities for firms to exploit
human resources. Furthermore, the private sector workforce is almost three
times greater in the Helsinki region, but the total available workforce has