Abstract Greenland has a significant strategic position in the Arctic as a potential trade route, but the economy is still highly dependent on imports, resource exports and Danish financial support. With climate change reshaping shipping routes in the Arctic, Greenland stands to become a regional trading and logistics hub. However, this move is constrained by infrastructure gaps, investment constraints and a lack of economic diversification. Other Arctic nations have developed extensive trade networks, but Greenland has yet to fully leverage its position for commercial expansion. It employs a mixed-methods approach, where it combines quantitative data analysis, with qualitative assessments for the trade balance, impacts of different sectors, and economic policies and infrastructure capacity in Greenland. The study findings show that Greenland has not yet realized its full potential in relation to its Arctic location’s strategic value as a location for trade, with fisheries dominating exports but industrial and logistics sectors underdeveloped. We would like to highlight that the trends in maritime activity indicate limited transit growth and some fluctuations, therefore, require continued strategic investment in port infrastructure and trade facilitation. The study, by covering trade-specific issues and opportunities for Greenland, adds to Arctic economics research and also aims to inform policymakers, economists and stakeholders. Greenland is poised to be a strong supporter, but the fundamental principles of infrastructure will be repurposed in new projects. Infrastructure, economic diversification, and trade policies that regulate the Arctic trade hub will be required to solidify Greenland’s strategic advantage as a dominant trade power.
Darie et al. (Tue,) studied this question.