Impact of import and export on the economic growth of Sweden Literature review

Impact of import and export on the economic growth of Sweden - Literature review Example Sweden, also sometimes known by the name Holland is located in North West Europe. Trade, energy sector and services industry are some of the major contributors to the Swedish GDP. Sweden also enjoys the honor of being the 16th largest economy in the world. Moreover, the total annual GDP of Sweden stands to be 4 percent higher than the average European GDP. Sweden favors an open trade policy and happens to be one of the top ranking free market economies in the world. Sweden accrues roughly 66 percent of its revenues through foreign trade. Import and export constitute the primary engine of economic growth in Sweden. Sweden is a very small nation that has an economy that is predominantly dependent on import and export for its sustenance. Going by the pivotal role of the import and export in the economic setup of the nation, the Swedish government had made it a point to design and administer the requisite, supportive trade policies and infrastructure. Over the last two decades, Sweden has tried its best to evolve into a net exporter of goods. Hydropower, engineering goods, iron ore and timber constitute the primary Swedish exports. Besides, Sweden also imports to its trade partners, cars, pharmaceuticals, telecommunication and IT products and services. A large number of Swedish companies responsible for a good chunk of imports and exports have managed to establish themselves as global leaders and top brands the like of Electrolux, Volvo and Sony Erickson. A majority portion of the trade and industry in Sweden are manage d by private concerns. It is largely owing to the highly professional and competitive approach of these private stakes in the Swedish economy and trade that Sweden is garnering an impressive and more or less stable economic growth. As per the World Economic Forum 2008, Sweden happened to be the fourth most competitive country in the world. One major reason responsible for the success of Swedish exports in the global markets is the impressive investment Sweden makes in research and development. Thus the products exported by Sweden do have an inalienable technological edge tagged to them, which sets them apart from other competitors. A fair estimate of Swedish panache for competitiveness in imports and exports can be judged from the fact that in 2007, Sweden invested roughly 3.5 percent of its GDP in research and development initiatives. To sustain its industrial and trade framework, Sweden also needs to import a variety of goods and services. One salient reason behind the economic po tential of Sweden is that it suffered a severe recession in the early 90s. At that time, the Swedish government decided to place international trade at the core of its economic recovery plan. So, no doubt, import and export have a central and crucial role to play in the overall economic growth of Sweden. In the current times marred by recession and economic slowdown, Sweden with its trade setup, backed by apt import and export policies and favorable infrastructure, is more likely to chart a smooth course as compared to other developed economies. The trade sector in Sweden is quiet robust and relatively less vulnerable to global