The United States : friend or foe.

• Main Authors: Tan, Jie Ying., Teo, Penny Yi Xin.
• Other Authors: Tan Kim Heng
• Format: Final Year Project
• Language: English
• Published: 2009
• Subjects: DRNTU::Social sciences::Economic development::Singapore
• Online Access: http://hdl.handle.net/10356/15129
• Institution: Nanyang Technological University

This paper seeks to provide both a qualitative and quantitative answer to the question of how dependent the Singapore economy is on the economy of the United States, in the light of the global financial crisis. We concentrate on examining the trade patterns and capital inflows (in the form of foreign direct investment) between the two economies and find that even though trade with the United States has been on the decline in recent years, the amount is still substantial and non-negligible. A regression of Singapore domestic exports on the Gross Domestic Product of the United States, as well as other factors which were deemed to affect trade between the two economies, showed that the dollar volume of exports is still very much affected by the Gross Domestic Product of the United States.