Economic Growth in High Income Countries

Ulrikke Bjerre Henriksen, Roar Sejr Bramming Hyldkrog, Sofie Carlota Gregersen-Diaz & Esben Sandholdt Adamsen

Studenteropgave: Bachelorprojekt

Abstrakt

The project is a case study taking point of departure in Denmark, and the financial policies that the Danish Government has been proposing in the period 2006-2016. It seeks to answer the question: “What are the limitations of the conducted economic policy in Denmark, and what problems might occur as a result of these limitations?”. To answer the question, the project examines international and national limitations, being Denmark’s international commitments and paradigmatic subscriptions, respectively. Paradigmatic subscriptions are divided into mainstream economic theory, neomercantilism, and Keynesianism. The dominating paradigm in the Danish government and its administration is examined using primarily qualitative closed-coded analysis, with the codes derived from economic theory. The economic goals of the government is also extrapolated through qualitative open-coded analysis. These analyses are conducted on ten Danish policy documents.

The analyses shows that the main goal of the Danish government is to create economic, GDP, growth, through increasing labour supply and balancing state budgets. This corresponds to the results of the close-coded analysis, showing a heavy bias towards the mainstream economic paradigm, supported by some neomercantilism. Keynesian codes are underrepresented, despite a change in the political leadership in 2011. The analysis of Danish international commitments show that even though Denmark is bound to live up to certain standards, there is no mention of the form of economic policies that should be used to achieve the set standards. Finally, the examination show inconsistencies between the policy proposals in the documents, and the actual conducted policies.

From discussing the results of the analyses, it is concluded that the Danish government focuses on supply when it wants to generate growth, and largely ignore demand. It assumes that increased labour supply leads to an equivalent increase in employment. It is concluded that this is only the case if the increased supply is caused by demographical changes. Balanced budgets are criticised for being problematic during a recession, and export led growth for creating an asymmetrical international development. Finally, we argue that the fundamental analysis of the crisis is wrong, as the Danish government neglects to examine the effects of falling demand and cash-flow leaks.

UddannelserBasis - International Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Bachelor
SprogEngelsk
Udgivelsesdato24 maj 2016
Antal sider70
VejledereJesper Jespersen

Emneord

  • økonomi
  • dansk finanspolitik
  • growth
  • GDP
  • heterodox økonomi
  • neomercantilism
  • neoliberalism
  • neoclassical
  • keynesianism