DonNUET named after Mykhailo Tugan-Baranovsky, Charming_girl@ukr.net
Services play a major role in all modern economies. An efficient services sector is crucial for trade and economic growth and for undeveloped and developed economies. Trade in services also plays an important role in creating wealth and jobs for all economies around the world, and is a catalyst for development. Services are the backbone of economies and trade around the world and provide vital support to the economy and industry as a whole, for example in terms of finance, logistics and communications. Increased trade internal relations and availability of services boost economic growth by improving the performance of other industries, since services provide key intermediate inputs, especially in an increasingly interlinked globalised world .
The subject of this work is the services market condition of Sweden. It is important to determine what the services market condition is. It is a set of conditions which are formed and carried out in the market of services in certain time.
So, nine-year period of Sweden services market condition development has been made an investigation in this article. This period allows us to trace the major economic cycles and dependence, as well as to identify future trends (Table 1).
Table 1 - Indices of intensity of international trade in services of Sweden
From table 1 we can see that export quota has been increasing for all observable years. This means that the share of exports is increasing, and this testifies to the openness of the national economy, high role in the international division of labour. Import quota has also been increasing, but foreign quota always is positive and enlarges. It is very positive for economics of Sweden.
The intensity of intra-industry trade (table 1) can take values from 0 (no intra-industry exchange) to 100 (exchange has exceptionally intra-industry character). Values of these indices decreases from 2000 to 2007, but then increases a little. It means that at first exchange was exceptionally intra-industry, but then it tends to become not only intra-industry.
Export of services in Sweden is constantly increasing throughout the years. This indicates the positive economic trends. But from 2000 to 2002, imports exceeded exports, it indicates a stagnation in the economy in that period.
From the analysis of performance data on exports of services in Sweden we see that exports are growing rapidly and in 2008 it increased by 317, 62% as compared to 2000. This testifies to the sustainable development of economy and highly Swedish services. Export growth is also encouraging. In the latter study, the growth rate of exports amounted to 217, 62% comparing with 2000.
In the result of correlation and regression analysis I’ve found out the influence of the main factors on export quota of services: GDP, gross fixed capital formation, unemployment rate, and inflation. GDP has the biggest impact (98, 01 %) on the export quota of services in Sweden, then gross fixed capital formation (94, 63 %), inflation (9, 87 %) and unemployment rate (4, 41 %).
As for prognosis for services market condition of Sweden, it is positive. That’s due to sustained economic growth, reflected in GDP growth, reducing inflation, lowering unemployment, continuing to attract foreign investment. Besides the social sphere has a high level of development (the majority of social services is free and accessible to most citizens). Now Sweden has some of the most favorable conditions for the effective operation of the service sector, and therefore has the advantages in the trade in services with other countries all round the world.
1. Doing Business in Sweden: 2010 Country Commercial Guide for U.S. Companies [Електронний ресурс]. – Режим доступу: http://www.buyusa.gov/sweden/en/ccg.html