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Arndt, Sven W.
Claremont Institute for Economic Policy Studies
Year of Publication: 
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Working paper series // Claremont Institute for Economic Policy Studies 2002-36
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.
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Working Paper

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