News

23-08-2007
Vacancies for senior economists at Copenhagen Economics
We are looking for senior economists to our key areas of expertise Regional Economics and International Trade. Find the job postings here (Danish only) Please note the deadline for applications is 22 September 2007.
23-08-2007
Vacancies - Copenhagen Economics is looking for research assistants
We are looking for research assistants. Find the job postings here and here (both in Danish only)
09-07-2007
FDI and regional development
Foreign direct investment (FDI) can play an important role in raising a region’s technological level, its productive efficiency and its ability to compete internationally. Foreign firms bring new technologies, new knowledge, and new management skills, and local firms can learn from this. However, fears have also been raised that foreign competitors crowd out local firms, and a net positive effect on the regional economy can not be taken for granted. On behalf of the European Commission, Copenhagen Economics has identified and measured externalities arising from FDI at the regional level. We show that productivity is increased through both vertical and horizontal spillovers. In other words the whole value chain as well as competitors are positively affected by an inflow of FDI. We also confirm that over time labour demand is unaffected by inflow of FDI.  However, both job creation and job destruction occur in industries with many foreign firms over the short run. But overall, FDI is a positive stimulus on regional employment. In a second part of the study, Copenhagen Economics has investigated what drives FDI flows. We find clear evidence that FDI is attracted by regional policy. Thus, investments in educating the regional work force, increasing the level of spending on R&D, supporting strong regional clusters, and raising the penetration of new technology and infrastructure all increase the likelihood of receiving FDI significantly. The report can be downloaded here For further information you are welcome to contact Mr. Martin Hvidt Thelle
05-07-2007
Impacts of Differentiated VAT Rates
Having agreed in February 2006 to prolong the experiment with reduced VAT rates on labour intensive services, the ECOFIN Council invited the Commission to provide a report on the impact of reduced rates on job creation, economic growth and the internal market. The report was to be built upon a study carried out by an independent consultancy. Copenhagen Economics was selected to carry out the study. At a press conference on Thursday, July 5, 2007, Commissioner Laszlo Kovacs unravelled the results of our study to the public in the form of a Communication, which calls for a broad debate to raise the awareness across the member states of the costs and merits of selective VAT reductions they choose to implement. Based upon new empirical evidence, model simulations, theory and country experiences, the study concludes:
  • There are strong general arguments for having just one VAT rate per member state. A single rate can improve economic efficiency, reduce compliance costs and smooth the functioning of the internal market.
  • However, we agree that reduced rates in selective cases may have merit. It can (1) increase efficiency by increasing productivity or by reducing structural unemployment and/or (2) enhance equity by improving the income distribution or by making particular products more accessible to the entire population.
  • We largely conclude that in the areas where efficiency or equity can be improved in a cost effective manner by way of reduced rates, adverse internal market effects such as distorted competition across borders are for the most part insignificant. In contrast, we define a number of other areas where reduced rates are detrimental to the internal market without having strong positive impacts on national objectives. 
  • Finally, we underline that targeted direct budget subsidies can often achieve better results at lower costs than reduced VAT rates, which should be factored into discussions on the use of reduced VAT rates.
Throughout the study, we propose some practical guidelines and tests that can be used to translate these conclusions into actual policy making including the balance between national and community objectives. Read the Commission's communication here Read the full report here For further information please contact Helge Sigurd Næss-Schmidt or Christian Jervelund
08-06-2007
The 2007 Øresund index now available

Erhvervslivets Øresundsindeks er i 2007 målt til 68 på en skala fra 0 til 100. En værdi på 100 svarer til det niveau for aktivitet på tværs af Øresund som man kunne forvente i en situation uden barrierer mellem Sjælland og Skåne. Det giver en stigning i forhold til sidste år på fire indekspoint. Øresundsindekset er primært drevet af udvikling på arbejdsmarkedet i år. Den danske højkonjunktur slår igennem på både de danske og de svenske indikatorer for arbejdsmarkedet. Henholdsvis positivt og negativt. Resultatet bliver at det danske landindeks for første gang i Øresundsindeksets historie overstiger det svenske indeks. Det er også første gang Danmark kan anses som den side der driver udviklingen af Øresundsintegrationen. Vi ser desuden at det svenske pendlingstal overstiger benchmarket og dermed bliver den anden indikator der opnår niveauet for fuld integration på 100. Det pressede danske arbejdsmarked samt det høje antal flytninger fra Hovedstaden til Stormalmø giver også stigninger i bil- og togtrafikken. På handel & samarbejde er det især virksomhedernes ens konjunkturvurderinger på hver side af sundet der giver grund til begejstring. Copenhagen Economics har opgjort Erhvervslivets Øresundsindeks for Øresund Industri & Handelskammare hvert år siden 2001. Formålet med Erhvervslivets Øresundsindeks er at måle integrationen i Øresundsregionen ud fra erhvervslivets perspektiv. Læs rapporten her For yderligere oplysninger kontakt Partner Martin Hvidt Thelle