Basic features of demand-led regional integration

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Demand-led growth is an economic model where it means that countries' domestic demands will increase in total long-run output. Theorists said that in a demand-led growth model increased in demand will affect the increase in supply. On the other hand, Neo-classical theory states that demand follows supply and supply follows growth in the long run.

 

1. Demand-led growth model helps developing countries by improved income distribution;

2. Countries also get adequate & fairly priced financing for development;

3. Stabilized financial market by financial architectural reforms and regulations;

4. Good Governance;

 



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