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Productivity Shocks to the Pharmaceutical Sector and the Danish Economy: Denmark
The pharmaceutical industry in Denmark has grown rapidly in recent years. This paper discusses the macroeconomic impact of the pharmaceutical sector. The analysis focuses on Novo Nordisk, the leading pharmaceutical company in Denmark, and its productivity impact on the rest of the economy. Empirical evidence suggests only weak correlations between productivity shocks at Novo Nordisk and overall economic growth, as well as between Novo Nordisk’s productivity and that of other firms. However, we find evidence of a significant within-industry spillover effect in the pharmaceutical sector.
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