Do the Free Trade Agreements Increase Swedish Export? : A Gravity Study

The WTO strives to advance trade liberalization and the vast majority of the future global growth is expected to occur outside of Europe. The EU's strategy to face this development is to pass free trade agreements. The purpose of these agreements is to increase trade and stimulate growth, which according to trade theory, impacts a small and trade dependent country like Sweden. Previous research on free trade agreements shows positive effects on trade flows but it is rather uncertain how individual countries and Swedish export have been affected. The purpose of this study is therefore to empirically analyze whether free trade agreements have a significant effect on the Swedish export of goods during 1998-2017. To determine the effect panel data and three econometric models are used. The gravity model constitutes the theoretical basis of the inquiries. Our final judgement based on the three model characteristics and their result is that we cannot conclude whether free trade agreements has a significant effect on the Swedish export of goods during 1998-2017

Do the Free Trade Agreements Increase Swedish Export? : A Gravity Study

The WTO strives to advance trade liberalization and the vast majority of the future global growth is expected to occur outside of Europe. The EU's strategy to face this development is to pass free trade agreements. The purpose of these agreements is to increase trade and stimulate growth, which according to trade theory, impacts a small and trade dependent country like Sweden. Previous research on free trade agreements shows positive effects on trade flows but it is rather uncertain how individual countries and Swedish export have been affected. The purpose of this study is therefore to empirically analyze whether free trade agreements have a significant effect on the Swedish export of goods during 1998-2017. To determine the effect panel data and three econometric models are used. The gravity model constitutes the theoretical basis of the inquiries. Our final judgement based on the three model characteristics and their result is that we cannot conclude whether free trade agreements has a significant effect on the Swedish export of goods during 1998-2017

Does the Swedish stock market exhibit mean reversion? : A study on the Stockholm Stock Exchange, its sectors and different market conditions

The purpose of this study is to examine whether the returns on the Stockholm Stock Exchange and its different sectors is mean reverting during the period 2003–2019. In addition to the examination of the entire period, the study also examines the periods before, during and after the global financial crisis. Daily, weekly and monthly data is used in combination with three different statistical methods in the form of ADF-tests, KPSS-tests and GPH-tests. The previous research conducted within the area yield different results but the tendency to find support for mean reversion increases during periods of economic uncertainty. The main standpoint used in previous literature and also this study is based on Famas (1970) publication about the efficient market hypothesis (EMH).  The results from the entire period are in line with the EMH where no robust indications for mean reversion is found neither for the specific sectors or the index itself. However, when the different periods are examined, in the period following the global financial crisis the healthcare and real estate sector show signs of mean reversion. In summary, the results show more support for mean reversion when the sectors are examined in relation to the entire Stockholm Stock Exchange. The conclusion based on these results is that an investor, in contrast to the EMH, can use the serial correlation in returns for these sectors as an indicator for when to buy and sell assets during periods as the one following the global financial crisis.

Does the Swedish stock market exhibit mean reversion? : A study on the Stockholm Stock Exchange, its sectors and different market conditions

The purpose of this study is to examine whether the returns on the Stockholm Stock Exchange and its different sectors is mean reverting during the period 2003–2019. In addition to the examination of the entire period, the study also examines the periods before, during and after the global financial crisis. Daily, weekly and monthly data is used in combination with three different statistical methods in the form of ADF-tests, KPSS-tests and GPH-tests. The previous research conducted within the area yield different results but the tendency to find support for mean reversion increases during periods of economic uncertainty. The main standpoint used in previous literature and also this study is based on Famas (1970) publication about the efficient market hypothesis (EMH).  The results from the entire period are in line with the EMH where no robust indications for mean reversion is found neither for the specific sectors or the index itself. However, when the different periods are examined, in the period following the global financial crisis the healthcare and real estate sector show signs of mean reversion. In summary, the results show more support for mean reversion when the sectors are examined in relation to the entire Stockholm Stock Exchange. The conclusion based on these results is that an investor, in contrast to the EMH, can use the serial correlation in returns for these sectors as an indicator for when to buy and sell assets during periods as the one following the global financial crisis.