Denmark and its economy are highly dependent on Danish companies having access to the global market. This is illustrated by our new analysis of Danish companies’ exposure to global uncertainty, which we have done in collaboration with the Danish Business Authority.
In the analysis, we map where and how Danish companies constitute part of global value chains and subsequently compare the Danish exposure to global uncertainty compared to other EU countries. This analysis has been combined with various trade policy trends such as Brexit and the US-China trade conflict in order to clarify where Danish companies may be exposed to increasingly uncertain business conditions.
Danish companies are exposed to the global market
Almost half of the exports of Danish goods and services end up in countries outside of the EU/EEA. This corresponds to 356,000 Danish jobs tied to exports to countries outside of the EU/EEA. These exports occur partly when Danish companies sell directly to markets outside of the EU/EEA and partly when Danish companies export to other EU countries, which subsequently process and export the goods to a country outside of the EU.
Danish companies depend on global subcontractors
30% of the value of Danish exports is generated outside of the country. 11% of the value is Danish exports, or the equivalent of just over DKK 92 billion generated in countries outside of the EU/EEA. Global subcontractors are therefore essential in Danish production and export. 19% is generated within the single market, and the UK alone accounts for 2% of the value of Danish exports.
The study is commissioned by the Danish Business Authority.
Højbjerre Brauer Schultz (2019): "Danske virksomheder i globale værdikæder"