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The Role Of The State In The Increasingly Globalized Economy: Implications For Singapore

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  • JANG-SUP SHIN

    ()
    (Department of Economics, National University of Singapore, Singapore)

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    Abstract

    This paper argues that the role of the state becomes more important in some significant respects as the pace of globalization accelerates, contrary to the popular perception that it should be diminished. This is mainly because, as mobile factors obtain more freedom to choose locations across national borders, the role of the state as the ultimate provider of "complementary assets" in attracting mobile factors to a national economy becomes more important. The paper also argues that the very success of Singapore's complementing strategy in the era of globalization has necessitated the state to move to a two-pronged strategy, in which it needs to attempt seriously to acquire higher-end capabilities that are securely based on its territory, while trying to exploit ever-expanding complementary business areas as it has done previously.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal The Singapore Economic Review.

    Volume (Year): 50 (2005)
    Issue (Month): 01 ()
    Pages: 103-116

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    Handle: RePEc:wsi:serxxx:v:50:y:2005:i:01:p:103-116

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    Related research

    Keywords: Globalization; state; mobility; complementary assets; R&D; Singapore;

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    Cited by:
    1. Chellaraj, Gnanaraj & Maskus, Keith E. & Mattoo, Aaditya, 2009. "Labor skills and foreign investment in a dynamic economy : estimating the knowledge-capital model for Singapore," Policy Research Working Paper Series 4950, The World Bank.

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