For a long period, Denmark has had a surplus on the balance of payments. The manufacturing industry contributes massively to the balance of payments surplus because the sector has extensive net exports of goods. Danish industrial groups have increasingly become globally organised producing goods across borders.
Accordingly, there is a close correlation between the manufacturing industry’s investments in foreign subsidiaries and Danish exports and investment income that impacts the balance of payments statistics.
As part of the examination of the international organisation of industrial groups and their significance to the Danish economy, this analysis examines investments abroad and the groups’ total contribution to the balance of payments surplus in 2018. To illustrate the presence abroad, we apply a new approach to examine the ultimate destinations for the industrial groups’ investments.
Few industrial groups contribute massively to Denmark's balance of payments surplus
Subject group: Economy
Released: 17 February 2020 08:00
ISSN pdf: 2446-0354