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Sport As an Industry in Finland. Exploring the Economic STUDIES IN SPORT, PHYSICAL EDUCATION AND HEALTH 240 Hamid JenniGholamzadeh Kulmala Fasandoz Sport as an Industry in Finland Exploring the Economic SigniÀcance, Contributions, and Development of the Sport Sector as an Industry STUDIES IN SPORT, PHYSICAL EDUCATION AND HEALTH 240 Hamid Gholamzadeh Fasandoz Sport as an Industry in Finland Exploring the Economic Significance, Contributions, and Development of the Sport Sector as an Industry Esitetään Jyväskylän yliopiston liikuntatieteellisen tiedekunnan suostumuksella julkisesti tarkastettavaksi yliopiston Liikunnan salissa L209 toukokuun 18. päivänä 2016 kello 14. Academic dissertation to be publicly discussed, by permission of the Faculty of Sport and Health Sciences of the University of Jyväskylä, in building Liikunta, auditorium L209, on May 18, 2016 at 14 o’clock. UNIVERSITY OF JYVÄSKYLÄ JYVÄSKYLÄ 2016 Sport as an Industry in Finland Exploring the Economic Significance, Contributions, and Development of the Sport Sector as an Industry STUDIES IN SPORT, PHYSICAL EDUCATION AND HEALTH 240 Hamid Gholamzadeh Fasandoz Sport as an Industry in Finland Exploring the Economic Significance, Contributions, and Development of the Sport Sector as an Industry UNIVERSITY OF JYVÄSKYLÄ JYVÄSKYLÄ 2016 Editors Jarmo Liukkonen Faculty of Sport and Health Sciences, University of Jyväskylä Pekka Olsbo Publishing Unit, University Library of Jyväskylä URN:ISBN:978-951-39-6607-2 ISBN 978-951-39-6607-2 (PDF) ISBN 978-951-39-6606-5 (nid.) ISSN 0356-1070 Copyright © 2016, by University of Jyväskylä Jyväskylä University Printing House, Jyväskylä 2016 ABSTRACT Gholamzadeh Fasandoz, Hamid Sport as an industry in Finland. Exploring the economic significance, contributions, and development of the sport sector as an industry Jyväskylä: University of Jyväskylä, 2016, 171 p. (Studies in Sport, Physical Education and Health ISSN 0356-1070; 240) ISBN 978-951-39-6606-5 (nid.) ISBN 978-951-39-6607-2 (PDF) Sport as an industry is one of the diverse industries in the business world. Economically it is considered one of the significant factors for revitalization of the national economy in many countries. However, the size of its real economic value and its industrial coverage sectors are debated issues that need proper research at the national level. Therefore, this study utilized a quantitative methodology by applying a production approach and its framework to find out the significance, contributions, and developments of the industry in Finland. The Finnish industrial sport sector comprises sixteen sub sectors of which nine were active in manufacturing of sport goods and seven in services. The present study concluded that the industry is shifting towards more service orientations. From 2002 until 2011, the sports sector on average generated 1.45% value-added while its gross domestic product constituted 1.31% of Finland’s gross domestic product. The share of sport enterprises was 1.7% of total enterprises, and the present study found that new enterprises were the main sources for generation of new jobs in most of the subsectors. Employment in the sport industry constituted 1.15% of total employment of all Finnish enterprises, and its industrial production of goods and services reached to 1.25% of total industrial output. During the same period, 0.52% of total exports of Finland happened in sports while 0.58% of total imports were in sports goods and services. Moreover, the sports sector generated 0.39% of taxes on production. The average aggregate supply of the sports sector was over four billion € per year, of which 93% was produced in the country and 7% was imported, while 92% of it was consumed and 8% was exported. The growth rate in aggregate, domestic, and foreign supply was on average over 4%. The study concluded that the sport sector is one of the major industries in the Finnish national economy. Its generation of value-added and gross domestic product was the fiftieth largest among one hundred thirty-five top industries in the country, and the eighteenth largest among twenty-two in Finland’s industrial head groupings. Keywords: sport industry, employment, enterprises, production, imports, exports, value added, gross domestic product, taxes on production, supply, consumption Author’s address Hamid Gholamzadeh Fasandoz Faculty of Sport and Health Sciences Department of Sport Sciences University of Jyväskylä FINLAND [email protected] Supervisors Professor Kimmo Suomi Faculty of Sport and Health Sciences Department of Sport Sciences University of Jyväskylä FINLAND Director PhD Ari Karimäki Sport Department of Jyväskylä City FINLAND Reviewers Research Manager PhD Victor Sojo Centre for Ethical Leadership Ormond College The University of Melbourne AUSTRALIA Professor Emeritus Matti Koiranen Jyväskylä University School of Business and Economics University of Jyväskylä FINLAND Opponent Dr hab. Jolanta įyĤko, prof. SGTiR Rector of Warsaw School of Tourism and Hospitality Management POLAND TIIVISTELMÄ Gholamzadeh Fasandoz, Hamid Sport as an industry in Finland. Exploring the economic significance, contributions, and development of the sport sector as an industry Jyväskylä: University of Jyväskylä, 2016, 171 p. (Studies in Sport, Physical Education and Health ISSN 0356-1070; 240) ISBN 978-951-39-6606-5 (nid.) ISBN 978-951-39-6607-2 (PDF) Urheilu- ja liikuntateollisuus on osa liike-elämää. Monissa maissa sitä pidetään merkittävänä kansantalouden elvyttäjänä, vaikka sen tosiasiallisesta taloudelli- sesta merkityksestä ja siihen kuuluvista aloista ei ole yksimielisyyttä. Aiheesta kaivataan kansallisen tason tutkimusta. Tässä tutkimuksessa on käytetty mää- rällisiä tutkimusmenetelmiä soveltaen ns. tuotantolähestymistapaa ja sen viite- kehystä alan merkityksen, aseman ja kehityksen valottamiseksi maassamme. Suomen liikuntateollisuussektori jakautuu 16 alasektoriin, joista yhdeksän kat- taa liikuntatuotteiden valmistajat ja seitsemän palveluntuottajat. Tutkimuksen perusteella alasta on tulossa palvelupainotteisempi. Vuosina 2002–2011 liikun- tasektorin arvonlisäyksen osuus oli keskimäärin 1,45 % ja bruttokansantuote (BKT) oli vastaavana ajankohtana 1,31 % Suomen bruttokansantuotteesta. Lii- kuntayritysten osuus oli 1,7 % kaikista yrityksistä. Useimmilla alasektoreilla pääosa uusista työpaikoista syntyi uusiin yrityksiin. Liikuntateollisuuden työ- paikat muodostivat 1,15 % suomalaisten yritysten työpaikoista, ja sen tuottei- den ja palveluiden tuotanto oli 1,25 % teollisuuden kokonaistuotannosta. Sa- malla ajanjaksolla 0,52 % Suomen kokonaisviennistä koostui liikuntateollisuu- desta, ja liikuntatuotteiden ja -palveluiden osuus kokonaistuonnista oli 0,58 %. Liikuntasektorin osuus tuotantoveroista oli 0,39 %. Liikuntasektorin kokonais- tarjonta oli keskimäärin yli neljä miljardia euroa vuodessa. Tästä määrästä 93 % oli tuotettu omassa maassa ja 7 % tuotu ulkomailta sekä 92 % siitä kulutettiin ja 8 % vietiin maasta. Kokonais-, kotimaisen ja ulkomaisen tarjonnan keskimää- räinen kasvu oli yli 4 %. Tutkimustulosten perusteella liikuntasektori kuuluu Suomen kansanta- louden avainaloihin. Arvonlisäyksen ja BKT:n perusteella se oli sijalla 50 maamme 135 suurimman alan joukossa sekä 18. suurin Suomen 22 päätoi- mialasta. Avainsanat: Liikuntateollisuus, työllisyys, yritykset, tuotanto, tuonti, vienti, arvonlisäys, bruttokansantuote, BKT, tuotantovero, tarjonta, kulutus ACKNOWLEDGEMENTS Since the initiation of this research, I had the privilege to receive advice, cri- tiques, and support by many who directly and indirectly played notable role in the completion of my thesis. I would like to thank my supervisor Professor Kimmo Suomi for giving me this opportunity to study this interesting topic in the University of Jyväskylä and for all the advice during this period. My deep- est gratitude is owned to Professor Johanna Mappes, without her help and her advices, I was not able to complete this thesis. Three times I decided to give up this dissertation, but her supports and encouragements made me determine to continue. I wish to thank Professor Kari Heimonen in the School of Business and Economics, University of Jyvaskyla who guided me to right direction. I also wish to thank adjunct professor Pasi Saiasalo and Adjunct Professor Esa Man- geloja which pre-examined my thesis and gave me advice to follow. I specially thank professor Saiasalo for his efforts and time in helping me how to follow this thesis step by step. I would like to thank senior researcher Esa Storhammar in the department of management and leadership who thought me how to work with input-output analysis. Data collection was one of the problematic issues during this period; I would like to thank Finnish Statistics Office, and those in this office who helped me kindly by phone and emails to cover this area as much as we could. Finally, I would like to thank my thesis official ex- aminers Professor Matti Koiranen and Victor Eduardo Sojo for their critiques and further improvement of this study. Finally I wish to thank my loved ones, my wife, Roghieh Ashrafi, my son Sina, and my family. Without their support, encouragement, and suffering dur- ing all these years, this was not possible to proceed. Jyväskylä 31.3.2016 Author ABBREVIATIONS CPA Classification of Products by Activity CN Combined Nomenclature EU European Union ISIC International Standard Industrial Classification GDP Gross Domestic Product GNP Gross National Product OECD Organization for Economic Co-Operation and Development NACE Classification of Economic Activities in the European Communities (Nomenclature Statistiqe
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