Foreign direct investment into Denmark before 1939: Patterns and Scandinavian contrasts

Drawing on a new database, this article presents the first systematic description and assessment of inward FDI into Denmark before World War II. A total of 168 cases were identified, with British, American and German firms dominating the overall picture as might be expected. The composition varies, however, over time and industries. The material shows that FDIs arrived in five distinct 'waves' each characterised by a lead nation and industry. The period under observation saw the transformation of an agricultural Denmark into an industrialised nation, which is reflected in the five waves, which were primarily directed towards 'new' industries. The article thus offers a link to Danish economic history in general. The material also enables a comparison with FDI into Norway and Sweden over the same period. For the purposes of allowing a discussion of the comparative aspect, FDI-related attitudes, legislation and policies are outlined. While Norway was an anti-FDI hardliner, Sweden took a softer stand and Denmark never abandoned its liberal attitudes. This new material allows us to conclude that, from an FDI perspective, the three nations were not one unit: Denmark broke the 'Scandinavian pattern'.