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Research Article Open access CC BY 3.0

Economic Structure’s Change Based on the Relationship between Domestic Final Demand and Production, Value Added and Import

Bui Trinh, Nguyen Viêt Phong

Journal of Economics, Management and Trade · pp. 1512–1524 · Published 2 Jun 2014

10.9734/BJEMT/2014/10160

Abstract

Annual GDP growth rate in the period of 2000 – 2006 averaged to 7.5% and the inflation was approximately 5%. In the period of 2007-2012, Vietnam’s macroeconomic policy shifted to the aggregated demand management policy. This research used the Keynes – Leontief relation to estimate the impacts of some demand side factors to production, value added and import. Main results of the study pointed out that the demand-side’s management is no longer suitable because the supply curve gradually approaches the horizontal axis, so that, any intervention on the demand side does not increase production, that only increase prices and deep trade deficit. JEL classification numbers: C13, C32, C52, G10  

Economic growth final demand export import input-output tables multiplier value added

Cited by 1

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