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Economic growth and welfare state: a case study of Sweden

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  • Luis Buendía
  • Enrique Palazuelos

Abstract

In this article we analyse the relation between the dynamics of economic growth and the welfare state using the Swedish experience as a case study. We defend three theses concerning the Swedish experience: that the deep economic crisis of 1990–93 constituted the definite breaking point for the accumulation pattern in force since the 1950s (and in crisis since the mid-1970s); that the new accumulation pattern eroded the long-standing symbiotic relationships between economic growth and the welfare state; and that the welfare state has suffered retrenchments and qualitative changes of great importance, which can be fundamentally explained by the transformations in the accumulation pattern. We conclude that the changes introduced in Sweden have continued to subordinate the welfare state’s main goals, giving priority to the new accumulation pattern.

Suggested Citation

  • Luis Buendía & Enrique Palazuelos, 2014. "Economic growth and welfare state: a case study of Sweden," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(4), pages 761-777.
    • Handle: RePEc:oup:cambje:v:38:y:2014:i:4:p:761-777.
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    File URL: http://hdl.handle.net/10.1093/cje/bet049
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    Cited by:

    1. Monika Bazyl, 2014. "Does low power distance culture contribute to lower long-term unemployment?," Applied Econometrics Papers, Department of Applied Econometrics, Warsaw School of Economics, vol. 1(1), pages 20-38.
    2. Buendía, Luis & Barredo, Juan & Balay, Juan, 2022. "Foreign sector and welfare state in Sweden: From complementarity to tensions," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 310-319.
    3. Eszter WIRTH, 2019. "The Coherence between Sovereign Wealth Funds and Fiscal and Monetary Policies: the Norwegian Case (2001-2017)," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 1.
    4. Arik Sadeh & Claudia Florina Radu & Cristina Feniser & Andrei Borşa, 2020. "Governmental Intervention and Its Impact on Growth, Economic Development, and Technology in OECD Countries," Sustainability, MDPI, vol. 13(1), pages 1-30, December.

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