Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Globalisation affects measures of wage competitiveness
Danish firms increasingly have goods processed abroad and sell them directly from abroad. This allows for a higher degree of specialisation, as well as capacity expansion. However, when firms outsource production, Danish value added is to some extent decoupled from use of Danish labour. This is a challenge when measuring wage competitiveness, so in this analysis adjustment is made for Danish firms' activities abroad. That provides a more accurate impression of the competitiveness of physical production in Denmark.