A significant drop in economic activity occurring in 2009 can be explained by the reduction in foreign demand via the export multiplier during global recession.
The influence of foreign demand through export multipliers is analyzed in more detail.
I am more than happy to accept that the combined collapse in export and government expenditure set off multiplier effects through the economy that hit certain sectors hard, such as the Melbourne residential construction industry (and let us remember that the net export multiplier
was self-evident to Australian economists such as de Lissa and Giblin, as it was to any publican from the Western Districts of Victoria, prior to Kahn and Keynes).
Assistance is allocated proportionally to the relative values of total output, export sales, total output or export multiplier for the targeted sector as these values provide some indication of the strength of the connectivity with the input suppliers.
The analysis shows that the overall leading simulation became S10 (previously S9 and both of the sector specific group) with the Shoalhaven region increasing its overall dominance with its other machinery and equipment sector remaining the main net-exports contributor despite its export multiplier falling slightly and representing mainly initial impacts with no industry support.
Policy Simulation Export Ranking by Export Multiplier Contribution.
This article illustrates an application of the input-output model to estimate the investment multipliers and export multipliers for the Peruvian economy for the year 2002.
The result is that, in the aggregate, investment and export multipliers were higher in 1994 than in 2002.