A General Equilibrium Explanation of the Growth in Singapore's Exports: A Paradoxical Outcome?

Singapore's recent trade record has some paradoxical results. Exports have increased when the Singapore dollar has appreciated by a significant margin, arguably due to real exchange rate (RER) misalignment. This article offers explanations for this unusual outcome by simulating a computable general...

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Publicado en:Journal of the Asia Pacific Economy Vol. 5; no. 3; pp. 303 - 336
Autor principal: Siriwardana, Mahinda
Formato: Artículo
Publicado: Taylor & Francis Ltd Oct2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2000
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        atl: A General Equilibrium Explanation of the Growth in Singapore's Exports: A Paradoxical Outcome?
      aug:
        au: Siriwardana, Mahinda
      su:
        Singapore
        Computer operating systems
        Foreign exchange rates
      sug:
        subj:
          Singapore
          Software publishers (except video game publishers)
          Software Publishers
          Computer operating systems
          Foreign exchange rates
      keyword:
        EXCHANGE RATE MISALIGNMENT
        Export growth
        General equilibrium
        SINGAPORE
        EXCHANGE RATE MISALIGNMENT
        Export growth
        General equilibrium
        SINGAPORE
      ab: Singapore's recent trade record has some paradoxical results. Exports have increased when the Singapore dollar has appreciated by a significant margin, arguably due to real exchange rate (RER) misalignment. This article offers explanations for this unusual outcome by simulating a computable general equilibrium (CGE) model of the Singapore economy to identify factors that may have influenced RER misalignment. Among the factors examined we find that overseas demand plays a pivotal role in the growth of Singapore's exports. This finding has important implications for Singapore in the light of growing economic uncertainty in the Southeast Asian economies. Research for this study was completed before the full impact of the 1997 financial crisis; follow-on research may illuminate the effects of the crisis on the results presented here.
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    language: English
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