Singapore's Bilateral Merchandise Trade Linkages with Japan and the United States: Trends,Patterns and Comparisons*

This paper analyses and compares trends and patterns in Singapore's bilateral merchandise trade relations with its two largest trading partners, Japan and the United States (US). Over the period 1976–1992, the analyses reveal that both Japan and the US have been relatively over-represented as Singapore's trade partners. However, whereas Singapore's trade with Japan has become more intensive in recent years, that with the US has become less so. Computations reveal that the degree as well as level of Singapore's intra-industry trade with the US has exceeded that with Japan. Nevertheless, while the degree of Singapore's intra-industry trade with Japan has been consistently increasing since 1981, bilateral trade with the US since 1987 has become increasingly inter- rather than intra-industry. The important nexus between trade and FDI is also highlighted.