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Production Sharing and Singapore's Global Competitiveness

Author

Listed:
  • Sven W. Arndt

    (Lowe Institute of Political Economy, 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.

Suggested Citation

  • Sven W. Arndt, 2002. "Production Sharing and Singapore's Global Competitiveness," Working Papers 0204, Lowe Institute of Political Economy.
    • Handle: RePEc:loi:wpaper:0204
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    File URL: http://lowe.claremontmckenna.edu/pdf/WP02-04.pdf
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