Production Sharing and Singapore's Global Competitiveness

Sven Arndt ()
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Sven Arndt: Lowe Institute of Political Economy, Claremont McKenna College

No 204, Working Papers from Lowe Institute of Political Economy

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. (search for similar items in EconPapers)
Pages: 17 pages
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:loi:wpaper:0204

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