Trade Cycles in a Re-export Economy: The Case of Singapore
AbstractSingapore was traditionally a “re-export economy” by virtue of her historical role as an entrepôt for Southeast Asia. This paper highlights the continued dependence of her modern economy on external demand and imported inputs. Unit root, cointegration and exogeneity tests reveal the existence of common stochastic trends driving global output on the one hand, and Singapore’s trade cycles on the other. An impulse response analysis confirms that exports co-move with re-exports and imports in the short run. Furthermore, innovation accounting shows that growth in the world economy is the most important contributor to Singapore’s trade expansion in the long run.
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Bibliographic InfoPaper provided by Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre in its series Economic Growth centre Working Paper Series with number 0905.
Length: 33 pages
Date of creation: May 2009
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