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Journal of Economic Integration 2006 September;21(3) :474-495.
Production Specialization and Trade Blocs

Deng-Shin Huang Yo-Yi Huang Ying-Chih Sun 

The Institute of Economics, Academia Sinica
National Taiwan Ocean University
Copyright ©2006 Journal of Economic Integration

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
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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