Increasing exports superior to expanding domestic absorption (Business Mirror (Philippines)) | Lao Tribune

Increasing exports superior to expanding domestic absorption (Business Mirror (Philippines))

BASIC economic theory is neat and straightforward: when the rest-of-the-world (ROW) account collapses, expand domestic absorption. And vice versa. In practice, expanding domestic absorption to compensate for the loss in the ROW account is never successful. The ROW account is always more powerful in stimulating economic growth than the domestic accounts of consumption, government expenditures and…