Economic growth in Sweden, 2000-2010 : The dot-com bubble and the financial crisis

    Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. The total output is the quantity of goods or servicesproduced in a given time period within a country. Sweden was affected by two crises during the period 2000-2010: a dot-com bubble and a financial crisis. How did these two crises affect the economic growth?     The changes of domestic output can be separated into four parts: changes in intermediate demand, final domestic demand, export demand and import substitution. The main purpose of this article is to analyze the economic growth during the period 2000-2010, with focus on the dot-com bubble in the beginning of the period 2000-2005, and the financial crisis at the end of the period 2005-2010. The methodology to be used is the structural decomposition method.     This investigation shows that the main contributions to the Swedish total domestic output increase in both the period 2000-2005 and the period 2005-2010 were the effect of domestic demand. In the period 2005-2010, financial crisis weakened the effect of export. The output of the primary sector went from a negative change into a positive, explained mainly by strong export expansion. In the secondary sector, export had most effect in the period 2000-2005. Nevertheless, domestic demand and import ratio had more effect during the financial crisis period. Lastly, in the tertiary sector, domestic demand can mainly explain the output growth in the whole period 2000-2010.

Estimating the effect of the 2008 financial crisis on GNI in Greece and Iceland: A synthetic control approach

The purpose of this thesis is to conduct a comparative study in order to estimate the impact of the financial crisis to the GNI of Greece and Iceland. By applying synthetic control matching (a relatively new methodology) the study intends to compare the two countries, thus deducting conclusions about good or bad measures adopted. The results indicate that in both cases the adopted measures were not the optimal ones, since the synthetic counterfactual appear to perform better than the actual Greece and Iceland. Moreover, it is shown that Iceland reacted better to the shock it was exposed. However, different characteristics of the two countries impede the application of Icelandic actions in the Greek case.