Production Sharing and Singapore's Global Competitiveness

SUSTAINING COMPETITIVENESS IN THE GLOBAL ECONOMY, R.S. Rajan, editor, Edward Elgar Publishing, 2003

17 Pages Posted: 18 May 2006

See all articles by Sven W. Arndt

Sven W. Arndt

Claremont McKenna College - Robert Day School of Economics and Finance

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.

Keywords: trade, fragmentation, offshore sourcing, income inequality, unemployment

JEL Classification: F11, F14, O14, O53

Suggested Citation

Arndt, Sven W., Production Sharing and Singapore's Global Competitiveness. SUSTAINING COMPETITIVENESS IN THE GLOBAL ECONOMY, R.S. Rajan, editor, Edward Elgar Publishing, 2003, Available at SSRN: https://ssrn.com/abstract=902715

Sven W. Arndt (Contact Author)

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States