South Korea's transition from imitator to innovator: The role of external demand shocks

Subject Balance of payments outlook. Significance Rising export revenues testify to the Greek economy’s improved international competitiveness. However, the increasing role of external demand in stimulating domestic economic growth leaves it more vulnerable to adverse external developments, such as decelerating EU growth, trade wars and main trading partners’ diminishing consumer demand. Achieving a more stable growth trajectory would require a sustainable recovery in domestic investment and more robust household spending. Impacts The expansion in the home-sharing economy is driving up rents, inflaming social tensions. Rising volumes of medium-to-high-value-added exports will support Greece’s deeper integration in global value-added chains. Large export-oriented firms’ increased profitability will undermine the competitiveness of SME counterparts restricted to the Greek market.

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Role of External and Domestic Demand in Economic Growth: A Study of BRICS Countries

Global Business Review ◽

10.1177/0972150919850408 ◽

2019 ◽

Vol 21 (2) ◽

pp. 547-566 ◽

Cited By ~ 1

Author(s):

Bibhuti Ranjan Mishra

Keyword(s):

Economic Growth ◽

Developed Countries ◽

Domestic Demand ◽

Impulse Response Functions ◽

Domestic Investment ◽

Causality Analysis ◽

Brics Countries ◽

External Demand ◽

The Impact

Despite the global downturn since 2008, the growth in BRICS countries as a group is least hampered as compared to the growth in the world, in general, and developed countries, in particular. Is it due to the strong domestic demand factors or external factors is an empirical question to be answered. Further, some economists are promulgating for a new development strategy of domestic demand-led growth. Hence, this article tries to examine the role of domestic and external demand to growth in BRICS countries. Domestic investment is taken to explore the impact of domestic demand on growth, while export and import variables are used to investigate the role of external demand in economic growth. To cater to the objective, causality analysis is done among exports, imports, domestic investment and economic growth using the vector auto regression analysis. Generalized impulse response functions are plotted to get an insight of dynamic interrelationships among these variables. The results are country-specific and mixed evidence of export-led and domestic demand-led growth is found depending on the individual countries of BRICS.

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Market Transparency in Business-to-Business e-Commerce

International Journal of E-Business Research ◽

10.4018/jebr.2011100105 ◽

2011 ◽

Vol 7 (4) ◽

pp. 62-78

Author(s):

Yasin Ozcelik ◽

Zafer D. Ozdemir

Keyword(s):

Tracking Performance ◽

Demand Shocks ◽

Market Transparency ◽

Market Makers ◽

The Poor ◽

External Demand ◽

Tracking Ability ◽

The Difference ◽

Business To Business ◽

Posted Offer

Market transparency refers to the level of current trade information revealed to participants by market makers. This paper analyzes the effect of market transparency on the outcomes of posted-offer style Business-to-Business e-commerce markets. First, increasing market transparency improves the price-tracking ability of sellers, and results in higher efficiency. However, revelation of quantity information on transactions is not very crucial as opposed to price information. Second, although sellers extract significantly higher surplus (profit) than buyers can do in a posted-offer market, the difference vanishes with increasing market transparency. Lastly, sellers in posted-offer markets respond poorly to external demand shocks. Interestingly, the poor price-tracking performance of sellers hurts buyers more. In other words, seller profits are much less sensitive to demand shocks as compared to buyer surpluses.

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Effects of Internal and External Imbalances and the Role of Relative Prices on Economic Growth: Evidence From Turkey

SAGE Open ◽

10.1177/2158244020919493 ◽

2020 ◽

Vol 10 (2) ◽

pp. 215824402091949

Author(s):

Irfan Civcir ◽

M. Emir Yücel

Keyword(s):

Economic Growth ◽

Budget Deficit ◽

Aggregate Demand ◽

Balance Of Payments ◽

Initial Model ◽

Relative Prices ◽

External Imbalances ◽

External Demand ◽

Interest Payments

Balance of payments constrained growth model considers that if a country has a chronic external deficit, economic growth can be constrained. Initial model extended by taking into account the effects of capital flows, external debt sustainability, interest payments, budget deficit or public debt, simultaneous effect of internal and external imbalance, and the role of relative prices. We further incorporate Turkey’s high intensity of imports in the aggregate demand components and estimated the model with system estimator. The new version of the model improves significantly explaining the growth in Turkey. Our results reveal that economic growth in Turkey constrained by internal and external imbalances and relative prices play a significant role. Policies aimed at changing the structure of the imports and exports are the most effective for achieving higher growth. It is also shown that economic growth in Turkey highly depends on external demand when the strong depreciation of the domestic currency also acts as a stimulus to growth.

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