Demand driven growth is rather a common approach in many countries in the short run. Growth in aggregate demand pushes production to higher level, increasing employment and income. But what is the case in small open e...Demand driven growth is rather a common approach in many countries in the short run. Growth in aggregate demand pushes production to higher level, increasing employment and income. But what is the case in small open economies, which are highly import dependable, service-oriented, and have to import most consumers＇ goods？ Research is focused on the case of small open economy （Montenegro）. Research will be based on statistical data for Montenegro, for period from 2000 to 2011. Data are processed in Eviews, using Least Square method to estimate equations and models. Research has shown that gross domestic product （GDP） growth in the short run, prior to global financial crisis, was achieved through growth in consumption and investment, which led to growth in import and growth in foreign debt, as consumption was financed significantly borrowing foreign financial resources. After the crisis, financial inflows dropped, leaving Montenegrin economy to struggle with increased debt （both public and private）, unfinished investment project to provide value added and low level of domestic production leading to even higher trade deficit. Future growth can be achieved only if it is driven by investments, as growth in consumption will more likely lead to higher trade deficit than production growth.展开更多
Democratic Republic of Congo is a developing country located in Central Africa with a population of over 75 million. Generally, it relies on import in international market for food as it has constantly been experienci...Democratic Republic of Congo is a developing country located in Central Africa with a population of over 75 million. Generally, it relies on import in international market for food as it has constantly been experiencing domestic crisis which hinders production. Given the importance of shores price policy and income policy, the government pays meticulous attention to these factors to meet the present and future food security. In order to understand the import behavior related to GDP and international trade prices, the study employs Almost Idea Demand System (AIDS) model using FAO data. The result explains that price effect is more useful to the food security of the country than the income effect, thus this study suggest the government should give priority to policy on price.展开更多
文摘Demand driven growth is rather a common approach in many countries in the short run. Growth in aggregate demand pushes production to higher level, increasing employment and income. But what is the case in small open economies, which are highly import dependable, service-oriented, and have to import most consumers＇ goods？ Research is focused on the case of small open economy （Montenegro）. Research will be based on statistical data for Montenegro, for period from 2000 to 2011. Data are processed in Eviews, using Least Square method to estimate equations and models. Research has shown that gross domestic product （GDP） growth in the short run, prior to global financial crisis, was achieved through growth in consumption and investment, which led to growth in import and growth in foreign debt, as consumption was financed significantly borrowing foreign financial resources. After the crisis, financial inflows dropped, leaving Montenegrin economy to struggle with increased debt （both public and private）, unfinished investment project to provide value added and low level of domestic production leading to even higher trade deficit. Future growth can be achieved only if it is driven by investments, as growth in consumption will more likely lead to higher trade deficit than production growth.
文摘Democratic Republic of Congo is a developing country located in Central Africa with a population of over 75 million. Generally, it relies on import in international market for food as it has constantly been experiencing domestic crisis which hinders production. Given the importance of shores price policy and income policy, the government pays meticulous attention to these factors to meet the present and future food security. In order to understand the import behavior related to GDP and international trade prices, the study employs Almost Idea Demand System (AIDS) model using FAO data. The result explains that price effect is more useful to the food security of the country than the income effect, thus this study suggest the government should give priority to policy on price.
