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Journal of Economic Integration 2020 December;35(4) :684-723.
DOI: https://doi.org/10.11130/jei.2020.35.4.684
Evolution of the Textile Production Chain in East Asia from the Hub-Spoke Structure Viewpoint

Tzu-Han Yang1 Deng-Shing Huang2 Yo-Yi Huang 3

1National Taipei University, Taiwan
2Academia Sinica, Taiwan
3National Taiwan Ocean University, Taiwan
Corresponding Author: Tzu-Han Yang ,Email: tmyang@gm.ntpu.edu.tw
Copyright ©2020 Journal of Economic Integration
ABSTRACT
This research utilizes hub-spoke analysis to trace the evolution of the textile production chain in East Asia during the period of world textile trade liberalization. We identify two different types of hubs via the functions they perform and track their shifting paths. The results illustrate that the Association of Southeast Asian Nations (ASEAN)-6 is a growing base for final products, while China has successfully shifted from downstream to mid- and upstream production. Although Japan’s hubness is decreasing in both the up- and midstream sectors, it reversed these disadvantages after 2004 and has reinforced its hub status in both areas. It appears that a tri-cycle momentum system is evolving, with each power wheel having its own leading position in the vertically integrated structure. At the same time, the cooperation between China and Japan through up- and midstream product trading has weakened, while that between ASEAN and Japan has grown.

JEL Classification
F15: Economic Integration
F17: Trade Forecasting and Simulation
Keywords: East Asia | vertical integration | textile products | hub-spoke analysis
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