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Estimating the Impact of Foreign Trade on GDP Growth in Sweden

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  • Manuchehr Irandoust

Abstract

This paper uses historic economic data to review Swedish foreign trade and industrial policy over the period 1800–2000. The long-term causal relationships between imports, exports and economic growth are examined. The results show that there exists a long-term relationship between imports, exports and growth and that the causality is bidirectional between the variables, implying a feedback effect. The findings indicate there was no productivity gap between Sweden and the rest of the world; the country did not violate its international budget constraint; growth- and export-promoting policies were successful; and intra-industry trade had a significant role in shaping Sweden’s exports and imports.

Suggested Citation

  • Manuchehr Irandoust, 2017. "Estimating the Impact of Foreign Trade on GDP Growth in Sweden," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 18(3), pages 113-132, July.
    • Handle: RePEc:wej:wldecn:678
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    Cited by:

    1. Hrechyshkina Olena & Samakhavets Maryia, 2019. "Foreign Trade of the Republic of Belarus in the International Business Environment," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 44(44), pages 47-55, June.
    2. Yantao Gao & Xilong Yao & Wenxi Wang & Xin Liu, 2019. "Dynamic effect of environmental tax on export trade: Based on DSGE mode," Energy & Environment, , vol. 30(7), pages 1275-1290, November.

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