SINGAPORE'S COMPARATIVE ADVANTAGE IN MANUFACTURING AND SERVICES

Abstract

In the 1980s, as the world economy slowed down while the debt burden-of developing countries continued to rise, both the developed and developing nations searched for a source of dynamism which could help them alleviate their economic woes. It was soon revealed that in practically every country, rapid sectoral growth was concentrated in the service sector. As attempts to liberalise trade in services continued currently under the Group of Negotiations on Services(GNS) framework, there was increasing recognition that services could be defined as a subject in which we never know what we are talking about, nor whether what we are talking about is true. Research on the role of services in development and trade is nonetheless proceeding. In light of the above developments, we undertook to examine Singapore's trade and comparative advantage, if any, in services for 1970-86. Indeed, we sincerely hope that this paper can stimulate further research in this amazingly fascinating quest for a greater understanding of comparative advantage in services and the linkages between service input and comparative advantage in both manufactures and services.