Trying to get a little movement out of the puppets, I have started trying this.  Cut out 2 arm pieces, flip the pattern and cut two more.



Match one of each up so the sides you want out are facing each other.



Sew them together



Stuff one arm until the elbow. leave a gap about the size of your finger unstuffed, then fill the rest. The stuffing can be anything, but for the bit right at the end, I would recommend foam or something that can be easily glued to.



Take 2 pieces of rope about 12" long. Tie a double knot at one end. Leave about a thumbs width and tie another double knot. Put just a little glue on each knot so they don't slip.



stuff one knot into the end of the arm and hot glue it in place, pinching the excess material up, covering the rope between the knots.



Cut a hole a little smaller than the knot into the puppet body where you want the arm to be and push the knot through. Glue the knot in place from the inside. Tada!

Looks like the same effect as using a doll joint.  Don't know if you've tried this, but it's much easier to trace the arm on fabricand sew, then cut it out (vs cutting then sewing).

Pretty similar.  But I have never got the idea of attaching the doll joint to the arm and making it look that great.  Plus, $5 worth of rope lasts forever!

Just chiming in...I have totally done this as well on my "budget" puppets. One thing I would recommend is to leave the rope unknotted until you attach it, and to thread it through a rubber gasket before knotting it. It helps to keep from pulling out after heavy use.