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Journal of Economic Integration 2006 September;21(3) :474-495.
DOI: https://doi.org/10.11130/jei.2006.21.3.474
Production Specialization and Trade Blocs
Deng-Shin Huang
Yo-Yi Huang and 
Ying-Chih Sun 
The Institute of Economics, Academia Sinica
National Taiwan Ocean University
Copyright ©2006 Journal of Economic Integration
ABSTRACT

Using the clustering analysis and gravity model, this paper investigates the evolution of likely trade-bloc phenomenon for the textile industry and the automatic data processing industry for the last three decades. For the textile industry, a significant two-bloc phenomenon could be identified, one declining bloc mainly composed of the European countries, and the other rising bloc of countries around Pacific Rim. For the automatic data processing industry, only one trade bloc could be identified. However, the core countries have gradually changed from those of Europe and USA to the countries of East Asia over the period.

JEL Classifications: F14, F15

Keywords: Two-bloc phenomenon | Textile industry | Automatic data processing industry | Gravity model | Globalization | Production disintegration
 
REFERENCE
1. Anderson, J. E. (1979), A Theoretical Foundation for the Gravity Equation, American Economic Review, 69, 106-116.
2. Artis, M. J. and W. Zhang (2001), Core and Periphery in EMU: A Cluster analysis, Economic Issues, 6(2), 39-59
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