INSPECTING THE EFFECTS OF NATURAL RESOURCES, ECONOMIC GROWTH AND TRADE OPENNESS ON FIRM PERFORMANCE: A CASE OF DANISH ECONOMY

Abstract

The performance of the firms is effected bythe changes in the macroeconomic environment in any economy. Considering this perspective, the research study explores the role of economic growth, foreign assets, trade openness, natural resourcesand the rule of law while targetingtheperformance of 36 multi-sector Danish firms. After considering fully modified and dynamic ordinary least square methods from 2015 to 2022, this research provides evidence of the significantly accelerating role of economic growth, foreign assets, natural resources and the rule of law in promoting the performance of selected firms in Denmark. The results further reveal that trade liberalization is, in fact, significantly discouraging the firm performance. Based on these results, we propose that promoting natural resources and domestic production may help expand Denmark's firms' return on assets and equity.The administrative authorities may also need to look into the trade openness factor that is not increasing the performance of the firms in Denmark.