2006–

The Turnaround of the Swedish Economy: Lessons from Large Business Sector Reforms

Policy Paper No. 73

Author(s): Fredrik Heyman, Pehr-Johan Norbäck and Lars PerssonPages: 39Published: November 1, 2015, revised February 2018

The Turnaround of the Swedish Economy: Lessons from Large Business Sector Reforms Fredrik Heyman, Pehr-Johan Norbäck and Lars Persson

How can a country improve the productivity growth in its business sector and reach its growth potential?

Sweden during the 1970–2010 period can serve as an example to help other countries understand how to efficiently reform a business sector. In the 1990s, Sweden implemented a reform package that ignited a successful reorganization of a business sector that had faltered for decades. To understand the economic forces behind this process, we first survey the industrial restructuring literature and then examine the reform package using Swedish matched plant-firm-worker data.

The removal of barriers to growth for new and productive firms and increased rewards for investment in human capital were crucial to the success of Sweden’s reforms. We also discuss how the reform experience of a developed country such as Sweden can be useful for developing countries that are in the process of transforming their business sectors.

Our findings suggest that policymakers have much to learn from country case studies and that the Swedish experience can be a valuable case study for developing countries that are attempting to promote growth by developing their business sectors.

 

 

 

 

Fredrik Heyman

Contact

Ph: +46 8 665 4537
fredrik.heyman@ifn.se

Pehr-Johan Norbäck

Contact

Ph: +46 8 665 4522
Mob: +46 73 574 3379
pehr-johan.norback@if...

Lars Persson

Contact

Ph: +46 8 665 4504
lars.persson@ifn.se

Elgar Companion to

Social Capital and Health

Martin Ljunge okt 2018.jpg

Martin Ljunge, IFN, is the author of a chapter, "Trust promotes health: addressing reverse causality by studying children of immigrants", in a new book edited by Sherman Folland and Eric Nauenberg. The cutting edge of research is presented, covering the ever-expanding social capital field.

About the book

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