Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.

Payment balance

Eksportformåen og lønkonkurrenceevne

The working paper investigates the relationship between export performance and wage competitiveness in the manufacturing sector. Analysesin the paper show that among industrialised countries for the period since 1995 countries with the greatest deterioration in wage competitiveness have also had a tendency to do relatively poorly in the export market measured in volumes. Data for Denmark show that our loss of export market shares in volumes has been particularly high in timeswhen the Danish labour costs have risen significantly more than abroad. When looking at current prices, the link between export performance and wage competitiveness in the Danish manufacturing sector is less clear. This applies to both the Danish manufactured exports in total, and to industrial sectors. An empirical analysis based on data across countries, industrial sectors and time shows that the Danish manufactured exports are less sensitive to changes in wage competitiveness than that of our main trading partners Germany, Sweden and United Kingdom.