Explaining the trade relation between India and Sweden in the 21st century

Abstract: The following bachelor thesis in Applied Mathematics at the school of Industrial Engineering and Management, aims to investigate which factors affect the trade relation between India and Sweden during the 21st century. This has been done by performing a multiple linear regression analysis. The selected response variable is India's import from Sweden, and the regressor variables are India's direct investments in Sweden, Sweden's direct investment to India, Sweden's import from India, the Swedish krona to Indian rupee exchange rate, as well as the Education level in India. Data is collected monthly and taken from various sources, namely the Central Bureau of Statistics (SCB) and the Swedish Central Bank. Using the OLS method to build and test our model, the results are that the Education level, Exchange rate, and Sweden's import from India are all significant in describing India's import from Sweden in the 21st century, specifically when considering a longer time span. Furthermore, this study found that education is negatively correlated, which could imply a reduced need for knowledge intensive imports as education level increases.