IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2016-052.html
   My bibliography  Save this paper

Singapore’s Export Elasticities: A Disaggregated Look into the Role of Global Value Chains and Economic Complexity

Author

Listed:
  • Ms. Elif C Arbatli Saxegaard
  • Mr. Gee Hee Hong

Abstract

Singapore is one of the world’s most open economies, with the size of its trade reaching about 350 percent of its GDP. With the rise of highly diversified cross-border production networks, Singapore has come to play an integral role in the global supply chain with heavy reliance on foreign contents in its exports and production. It has also successfully moved up the value chain, exporting goods with high sophistication and economic complexity. Against this backdrop, in this paper, using disaggregate industry/product level trade data, we revisit Singapore’s export elasticities and find that growing participation in global production chains and rising export complexity are important determinants.

Suggested Citation

  • Ms. Elif C Arbatli Saxegaard & Mr. Gee Hee Hong, 2016. "Singapore’s Export Elasticities: A Disaggregated Look into the Role of Global Value Chains and Economic Complexity," IMF Working Papers 2016/052, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2016/052
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=43775
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mr. Mehdi Raissi & Mr. Volodymyr Tulin, 2015. "Price and Income Elasticity of Indian Exports—The Role of Supply-Side Bottlenecks," IMF Working Papers 2015/161, International Monetary Fund.
    2. Kevin C. Cheng & Gee Hee Hong & Dulani Seneviratne & Rachel van Elkan, 2016. "Rethinking the Exchange Rate Impact on Trade in a World with Global Value Chains," International Economic Journal, Taylor & Francis Journals, vol. 30(2), pages 204-216, June.
    3. Rudolfs Bems & Robert C. Johnson, 2017. "Demand for Value Added and Value-Added Exchange Rates," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 45-90, October.
    4. repec:imf:imfwpa:15/400 is not listed on IDEAS
    5. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
    6. Rahul Anand & Mr. Roberto Perrelli & Boyang Zhang, 2016. "South Africa’s Exports Performance: Any Role for Structural Factors?," IMF Working Papers 2016/024, International Monetary Fund.
    7. Mary Amiti & Oleg Itskhoki & Jozef Konings, 2012. "Importers, exporters, and exchange rate disconnect," Working Paper Research 238, National Bank of Belgium.
    8. Nagwa Riad & Luca Errico & Christian Henn & Christian Saborowski & Mika Saito & Jarkko Turunen, 2012. "Changing Patterns of Global Trade," IMF Departmental Papers / Policy Papers 2012/001, International Monetary Fund.
    9. Mary Amiti & Oleg Itskhoki & Jozef Konings, 2014. "Importers, Exporters, and Exchange Rate Disconnect," American Economic Review, American Economic Association, vol. 104(7), pages 1942-1978, July.
    10. Dario Fauceglia & Andrea Lassmann & Anirudh Shingal & Martin Wermelinger, 2018. "Backward participation in global value chains and exchange rate driven adjustments of Swiss exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 537-584, August.
    11. Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
    12. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thorbecke, Willem, 2018. "The exposure of U.S. manufacturing industries to exchange rates," International Review of Economics & Finance, Elsevier, vol. 58(C), pages 538-549.
    2. Willem Thorbecke & Nimesh Salike, 2020. "Export Sophistication and Trade Elasticities," Journal of Asian Economic Integration, , vol. 2(1), pages 7-26, April.
    3. de Soyres, François & Frohm, Erik & Gunnella, Vanessa & Pavlova, Elena, 2021. "Bought, sold and bought again: The impact of complex value chains on export elasticities," European Economic Review, Elsevier, vol. 140(C).
    4. Willem THORBECKE & Chen CHEN & Nimesh SALIKE, 2020. "The Relationship between Product Complexity and Exchange Rate Elasticities: Evidence from the People's Republic of China's Manufacturing Industries," Discussion papers 20075, Research Institute of Economy, Trade and Industry (RIETI).
    5. Chen CHEN & Nimesh SALIKE & Willem THORBECKE, 2025. "Exchange Rates and Tariffs: Unravelling their impacts on China's ICT exports while accounting for product sophistication," Discussion papers 25054, Research Institute of Economy, Trade and Industry (RIETI).
    6. Willem THORBECKE & Nimesh SALIKE & Chen CHEN, 2020. "Product Complexity, Exports, and Exchange Rates: Evidence from the Japanese Chemical Industry," Discussion papers 20085, Research Institute of Economy, Trade and Industry (RIETI).
    7. Thorbecke, Willem & Salike, Nimesh & Chen, Chen, 2022. "The impact of exchange rate changes on the Japanese chemical industry," Japan and the World Economy, Elsevier, vol. 62(C).
    8. María Guadalupe Montiel-Hernández & Carla Carolina Pérez-Hernández & Blanca Cecilia Salazar-Hernández, 2024. "The Intrinsic Links of Economic Complexity with Sustainability Dimensions: A Systematic Review and Agenda for Future Research," Sustainability, MDPI, vol. 16(1), pages 1-26, January.
    9. Bhushan Praveen Jangam & Hari Venkatesh, 2022. "Global Value Chains and Exchange Rate Disconnect," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 347-359, December.
    10. Thorbecke, Willem & Kato, Atsuyuki, 2018. "Exchange rates and the Swiss economy," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1182-1199.
    11. Kim, Kyungmin, 2021. "Production sharing and exchange rate pass-through," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 817-835.
    12. Chen Chen & Nimesh Salike & Willem Thorbecke, 2023. "Exchange rate effects on China's exports: Product sophistication and exchange rate elasticity," Asian Economic Journal, East Asian Economic Association, vol. 37(3), pages 371-400, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adler, Gustavo & Meleshchuk, Sergii & Buitron, Carolina Osorio, 2023. "Global value chains and external adjustment: Do exchange rates still matter?," Economic Modelling, Elsevier, vol. 118(C).
    2. Fišera, Boris & Horváth, Roman, 2022. "Are exchange rates less important for trade in a more globalized world? Evidence for the new EU members," Economic Systems, Elsevier, vol. 46(1).
    3. de Soyres, François & Frohm, Erik & Gunnella, Vanessa & Pavlova, Elena, 2021. "Bought, sold and bought again: The impact of complex value chains on export elasticities," European Economic Review, Elsevier, vol. 140(C).
    4. Khee Giap Tan & Luu Nguyen Trieu Duong & Hui Yin Chuah, 2019. "Impact of exchange rates on ASEAN's trade in the era of global value chains: An empirical assessment," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 28(7), pages 873-901, October.
    5. Bhushan Praveen Jangam & Hari Venkatesh, 2022. "Global Value Chains and Exchange Rate Disconnect," Economic Papers, The Economic Society of Australia, vol. 41(4), pages 347-359, December.
    6. Syed Al-Helal Uddin, 2016. "Value-added Trade, Exchange Rate Pass-Through and Trade Elasticity: Revisiting the Trade Competitiveness," 2016 Papers pud11, Job Market Papers.
    7. Mr. Daniel Leigh & Weicheng Lian & Mr. Marcos Poplawski Ribeiro & Rachel Szymanski & Viktor Tsyrennikov & Hong Yang, 2017. "Exchange Rates and Trade: A Disconnect?," IMF Working Papers 2017/058, International Monetary Fund.
    8. Huang, Wendi & Zhang, Weikang, 2024. "Exchange rate and corporate investment: Heterogeneous effects via the global value chain networks," Journal of International Money and Finance, Elsevier, vol. 147(C).
    9. Hylke Vandenbussche & William Connell & Wouter Simons, 2022. "Global value chains, trade shocks and jobs: An application to Brexit," The World Economy, Wiley Blackwell, vol. 45(8), pages 2338-2369, August.
    10. Matteo Bugamelli & Silvia Fabiani & Stefano Federico & Alberto Felettigh & Claire Giordano & Andrea Linarello, 2018. "Back on Track? A Macro–Micro Narrative of Italian Exports," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 1-31, March.
    11. Biswajit Banerjee & Juraj Zeman, 2020. "Determinants of Global Value Chain Participation: Cross-country Analysis," Working and Discussion Papers WP 1/2020, Research Department, National Bank of Slovakia.
    12. Chung, Wanyu, 2016. "Imported inputs and invoicing currency choice: Theory and evidence from UK transaction data," Journal of International Economics, Elsevier, vol. 99(C), pages 237-250.
    13. David C. López-Valenzuela & Enrique Montes-Uribe & Héctor M. Zárate-Solano & Alvaro Carmona-Duarte, 2019. "Determinantes y evolución entre precios y cantidades de las exportaciones industriales de Colombia: un estudio a partir de un modelo de Panel-VAR," Borradores de Economia 1075, Banco de la Republica de Colombia.
    14. Gita Gopinath & Emine Boz & Camila Casas & Federico J. Díez & Pierre-Olivier Gourinchas & Mikkel Plagborg-Møller, 2020. "Dominant Currency Paradigm," American Economic Review, American Economic Association, vol. 110(3), pages 677-719, March.
    15. Raphael A. Auer, 2015. "Exchange Rate Pass‐Through, Domestic Competition, and Inflation: Evidence from the 2005–08 Revaluation of the Renminbi," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(8), pages 1617-1650, December.
    16. Biswajit Banerjee & Juraj Zeman, 2022. "Determinants of global value chain participation: cross-country analysis," Indian Economic Review, Springer, vol. 57(1), pages 59-95, June.
    17. Hülya Saygılı, 2023. "Invoicing currency, exchange rate pass‐through, and value‐added trade: The case of Turkey," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4401-4419, October.
    18. Chun Jiang & Fuwei Sun & Zhida Zhang, 2024. "Global Value Chain Participation and Firms' Responses to Exchange Rate Fluctuations," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(5), pages 53-86, September.
    19. Davies, Ronald B. & Studnicka, Zuzanna, 2018. "The heterogeneous impact of Brexit: Early indications from the FTSE," European Economic Review, Elsevier, vol. 110(C), pages 1-17.
    20. Francois de Soyres & Alexandre Gaillard, 2019. "Trade, Global Value Chains and GDP Co-Movement," World Bank Publications - Reports 33060, The World Bank Group.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2016/052. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.