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Production Sharing and Singapore's Global Competitiveness

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  • Sven Arndt

    (Claremont McKenna College)

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://www.claremontmckenna.edu/rdschool/papers/2002-36.pdf
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Bibliographic Info

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. 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.
  2. Sven W. Arndt, 1998. "Super-Specialization And The Gains From Trade," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 480-485, October.
  3. Sven Arndt, 2000. "Production Networks in an Economically Integrated Region," Claremont Colleges Working Papers 2000-49, Claremont Colleges.
  4. Arndt, Sven W., 1997. "Globalization and the open economy," The North American Journal of Economics and Finance, Elsevier, vol. 8(1), pages 71-79.
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