Nordic countries in Global Value Chains 2016

The report analyses the participation of Nordic enterprises in global value chains. A new, innovative dataset enables analyses of, for example, the different patterns of large, small and multinational enterprises’ participation in international trade as well as their impact on value added.

A key finding of the report is that the share of employment dependent on exports is higher in Denmark than in other Nordic countries. The new dataset also allows for distinction the impact of direct exports from the impact of indirect exports on employment. Indirect exports occur when non-exporting enterprises are supplying exporting enterprises.

The distinction between direct and indirect exports shows, for example, that Denmark is more dependent on trade than other Nordic countries. Direct exports generate 32 pct. and indirect exports another 13 pct. of Danish enterprises’ total employment. In other words, 45 pct. of total employment in Danish enterprises depends on exports. Corresponding shares in other Nordic countries are between 37 pct. (in Finland) and 43 pct. (in Sweden).

The new results presented in the report highlight the importance of indirect exports in evaluations of the overall impact of exports on national economies. Enterprises without direct exports can benefit from globalization nonetheless: 27 pct. of employment in non-exporting enterprises is generated from supplying exporting enterprises.

The report is part of the project Positioning Nordic countries and enterprises in Global Value Chains coordinated by Statistics Denmark and made possible by financial support of the Nordic Council of Ministers. Other participants include the national statistical offices of Finland, Iceland, Norway and Sweden, as well as the OECD. A previous report Services and Goods Exports from the Nordics – Strongholds and profiles of exporting enterprises has been published as part of the same project.