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    Analyses: Large increase in sales of goods abroad by Danish manufacturing industries

    Globalisation means that Danish enterprises are increasingly organising their production across borders. Today, processing abroad, traditional trading with goods across borders, as well as purchases and sales of goods not crossing Danish borders (merchanting) have become closely linked. This trend has been particularly strong over the past decade., This analysis describes how enterprises organise production internationally, with special focus on Danish manufacturing industries’ production and sales abroad. The analysis is based on new figures for balance of payments and international trade in goods and ser­vices, which were published on 10 October 2016., Main conclusions of the analysis: , In 2005, Danish manufacturers sold goods abroad which were not produced in Denmark for about DKK 8 bn. In 2015, this figure had risen to more than DKK 120 bn., Sales of merchanting goods by manufacturing industries, i.e. goods purchased and sold outside of Danish borders, amounted to almost DKK 70 bn. in 2015. The merchanting goods were primarily sold in other EU countries., Purchases abroad by Danish enterprises of foreign goods for processing abroad have in­creased over ten years from virtually zero to almost DKK 16 bn. In the same period, pur­chases by Danish enterprises of processing services abroad have risen from almost DKK , 1 bn. to almost DKK 9 bn., Get as pdf, Large increase in sales of goods abroad by Danish manufacturing industries, Colophone, Large increase in sales of goods abroad by Danish manufacturing industries, Subject group: Economy, Released: 18 November 2016 09:00, No. 2016:22, ISSN pdf: 2446-0354, Contact info:, Pia Nielsen, Telephone: 39 17 31 99

    Analysis

    Analyses: The global organisation of industrial groups has an impact on the measurement of Danish production and income

    The way in which Danish enterprises choose to organise their production and sales in the global economy impacts whether it is reflected as domestic production and value added (GDP) or only as income (GNI) in the national accounts. When Danish enterprises sell products abroad, the activities are included in Danish GDP, whereas income based on sales via subsidiaries abroad is only included in GNI. In this way, the choice of sales channel impacts the statistics on Danish production and income., This analysis describes the global set-up of Danish industrial groups and their impact on the Danish economy. Focus is on the close correlation between Danish exports and in-come from subsidiaries abroad. The analysis is an extension of a Statistics Denmark analysis from 2016 dealing with goods exports outside Denmark by Danish manufactu¬ring enterprises. Income data from the central bank of Denmark, Nationalbanken, has allowed us to further document the importance of the industrial groups to the Danish economy., Main conclusions:, The industrial groups are important to the Danish economy; they export goods and services produced in Denmark or abroad and receive income from subsidiaries abroad. , In 2016, Danish industrial groups’ sale abroad of goods not crossing the Danish border accounted for almost a third of their total sale of goods abroad of DKK 524 billion., The income from subsidiaries of DKK 42.1 billion accounts for approximately one third of total earnings from Danish industrial groups’ manufacturing activities abroad. These ear-nings could have been counted as exports had the group chosen a different role for the production taking place in subsidiaries abroad., In 2016, the industrial groups’ activities abroad accounted for approximately 6 per cent of the Danish gross national income (GNI) and approximately 4 per cent of the gross domestic product (GDP).,  , This is a translation of an analysis previously published in Danish 1 October 2018. See the analysis , here., Get as pdf, The global organisation of industrial groups has an impact on the measurement of Danish production and income, Colophone, The global organisation of industrial groups has an impact on the measurement of Danish production and income, Subject group: Economy, Released: 27 May 2019 08:00, No. 2019:7, ISSN pdf: 2446-0354, Contact info:, Mads Møller Liedig, Telephone: 39 17 34 78

    Analysis