Boserup Thesis Geography Password Dissertations
The interwar period is crucial for the long run relative success of Swedish economic growth.The decisive culmination in the post-war period with high growth rates in investments and in foreign trade stands out as well, as the deceleration in all aspects in the late twentieth century.Thus, in certain sectors there was also forging ahead, quickening the pace of structural change in the industrializing economy.Furthermore, during a century of fairly rapid growth new conditions have arisen that have required profound adaptation and a renewal of entrepreneurial activity as well as of economic policies.By the 1970s, however, the Swedish income level was more than three times higher than the global average and among the highest in Europe.Figure 1 Swedish GDP per Capita in Relation to World GDP per Capita, 1870-2004 (Nine year moving averages) Sources: Maddison (2006); Krantz/Schön (forthcoming 2007). The annual variation in world production between Maddison’s benchmarks 1870, 19 is estimated from his supply of annual country series. Sweden was able to take advantage of technological and organizational advances made in Western Europe and North America.
They were to remain so during the following periods as well.
This deceleration in productivity growth may be looked upon either as a failure of the “Swedish Model” to accommodate new growth forces or as another case of the “productivity paradox” in lieu of the information technology revolution. In terms of contribution to overall growth, TFP has increased its share for every period.
The TFP share was low in the 1840s but there was a very marked increase with the onset of modern industrialization from the 1870s.
The slow down in Swedish growth from the 1970s may be considered in this perspective.
While in most other countries growth from the 1970s fell only in relation to growth rates in the golden post-war ages, Swedish growth fell clearly below the historical long run growth trend. The 1970s certainly meant the end to a number of successful growth trajectories in the industrial society.