The Economist, October 13th, 2005
"In search of elusive domestic demand"
http://www.economist.com/displaystory.cfm?story_id=5025883
The author suggests that exports remain the primary driver of economic growth in south-east Asia, and domestic demand continues to remain stagnant. For example, exports stood at 168% of Singapore's GDP last year. The author seems to believe that for economic growth to be truly sustainable, it must, at least in part, be driven by domestic demand.
Is this a valid assumption? Is the author's belief that international trade is “fickle,” inaccurate? Finally, if international trade is fickle, why might domestic demand not be so?
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