21
In figure 6 the trade balances with and without natural resources respectively, are show in
income as well as in labour terms for the whole period 1980 til 1992. The slim dashed curve
shows factor income content in net exports as entered in official trade balance: It fell from
3.1% of GDP in 1980 til 1.3% in 1986 and increased hereafter to 8.4% of GDP in 1992. Trade
balance in factor income terms excl. oil, gas, and coal have a somewhat different path: From
6.1% of GDP in 1980 to 3.0% in 1986 and improvement to 8.6% in 1992, as shown in the bold
dashed curve. Both production and absorption of oil, gas, and coal changed in the period i.a.
due to huge investment in the energy sector. Moreover international prices and the
international value of US$ changed during the 1980s. The energy sector have little to do with
the domestic labour market. In the 1980s the curve for total labour (slim dotted) are therefor
different form the curve for total factor income.
The two bold curves in figure 6 for income and employment balance excl. oil, gas, and coal,
however, take the same course. The employment content balance is below the factor income
content balance, due to differences in factor income per employee in imports, export, and
domestic uses, presumably because of differences in capital input. These differences however
seem stable throughout the investigated period from 1980 to 1992. Conditions on the labour
markets in relation to foreign competition from im- and exports may therefore contribute to
explain the trade balance excl. oil, gas, and coal, and differences between types and level of
education can be analysed, and interpreted in relation to this part of Danish foreign trade. This
is done in table 4.
From table 4 it appears that the number of people with no education fell from 1980 to 1986
and again from 1986 til 1992 both for production, exports, imports, and absorption. As
mentioned: The supply of low-educated Danes is falling and this affects all parts of the labour
market. The supply of medium and high educated on the other hand is growing. This also
affects all types of production. Comparison between the different types can be done be means
of the Vanek chain in formula 12 as calculated to the right column of table 4.