Tapping on growth opportunities through trade and investment

• Main Authors: FENG, Andy, FOONG, Gerald, LIM, Geraldine
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Policy making; economic policy; Singapore; economic growth; international trade; Asian Studies; Economic Policy; Growth and Development; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2726; https://ink.library.smu.edu.sg/context/soe_research/article/3725/viewcontent/Tapping_on_growth_opportunities_through_trade_and_investment_av.pdf
• Institution: Singapore Management University

As a small and open economy, external developments play a crucial role in shaping Singapore’s growth prospects. In particular, external demand is pivotal in supporting the growth of Singapore’s gross domestic product (GDP) beyond the limits afforded by a small domestic market. Furthermore, due to the resource constraints faced by Singapore, its production of goods and services to meet both external and domestic demand requires a substantial use of imported inputs. Apart from trade, Singapore’s openness and outward-orientation also extend to its embrace of inward and outward investments to grow its economy and create jobs for Singaporeans. In view of these factors, it is important for policymakers to have a better understanding of how the external drivers of Singapore’s economy have changed over time, as well as the contribution of trade and investments to the economy. Accordingly, this chapter reviews the economic research conducted in the public sector on Singapore’s trade and investments. It presents the key methodologies employed and the findings from the research.