Abstract
This paper analyzes the changes of economic institution of Sweden in association with the integration into the European Single Market from two aspects. One aspect involves the change of economic institution in order to introduce the main function of the European Single Market, that is to say, the four freedoms. The other aspect is the change induced by the harmonization of Swedish system to EU system on the condition to the integration. The analysis revealed that these changes affected Swedish economy and companies as follows. First, free movement of goods, services, and capital lowered the barriers for Swedish companies to expand their business overseas. Secondly, capital inflows increased after the deregulation of capital market. It changed the ownership structure of Swedish companies drastically. Thirdly, institutional reforms for harmonization made Swedish market more open and efficient. This changed an economic environment and competitive conditions surrounding Swedish companies.
