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Production Sharing and Singapore's Global Competitiveness

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Author Info
Sven Arndt (Claremont McKenna College)

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Abstract

This chapter investigates the contribution of cross-border production networks to the international competitiveness of a nation’s producers. Cross-border sourcing of components has effects on productivity and efficiency that are very similar to those of technical progress. When a country’s comparative advantage varies across the components of a product, the ability of that product to compete in world markets is improved when components are sourced from lowest-cost suppliers. Parts, components, and accessories play an important role in Singapore’s trade with both less and more advanced countries. This opens opportunities as well as risks.

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File URL: http://econ.claremontmckenna.edu/papers/2002-36.pdf
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Paper provided by Claremont Colleges in its series Claremont Colleges Working Papers with number 2002-36.

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Date of creation: Jul 2002
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Handle: RePEc:clm:clmeco:2002-36

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  1. Sven W. Arndt, 1997. "Globalization and the Open Economy," Working Papers 9701, Lowe Institute of Political Economy. [Downloadable!]
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  2. Arndt, Sven W, 1998. "Super-Specialization and the Gains from Trade," Contemporary Economic Policy, Oxford University Press, vol. 16(4), pages 480-85, October.
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  3. Sven W. Arndt, 1999. "Globalization and economic development," Working Papers 9902, Lowe Institute of Political Economy. [Downloadable!] (restricted)
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  4. Deardorff, Alan V., 2001. "Fragmentation in simple trade models," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 121-137, July. [Downloadable!] (restricted)
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  5. Sven W. Arndt, 2001. "Production Networks in an Economically Integrated Region," Working Papers 0103, Lowe Institute of Political Economy. [Downloadable!]
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