Evolution of East Asian Economic Hubs and Development of the ASEAN Economic Community: The Case of the Textile Industry
研究論文 Research Paper
This article applies the hubness measure of Baldwin (2008) and regional hub and spoke indices developed by D.-S. Huang, Y.-Y. Huang and Sun (2017) to investigate the hub-and-spoke structural changes in the East Asian region. Taking the case of the textile industry, we trace the trends of regional production integration and the role changes of its members as hubs and spokes. Three aspects are discussed. First, the regional hub and spoke indices are computed for the 11 East Asian economies to demonstrate the interdependent relationships among them. Second, the ASEAN economic community (AEC) is treated as a single economy to see how it affects regional production. Third, the inner structure of AEC is examined. Different from most of the literature analyzing only the shifts of regional hubs, we trace the transfers of both regional hubs and spokes of the up-, mid- and downstream sectors to fully reveal the changes in regional vertical integration. The results show that China steadily played the role of leading hub in the up- and midstream textile industries. The advantages of scale economy make the integrated AEC the second regional hub, and the difference in importance between China and AEC has gradually narrowed. Hong Kong has remained the regional spoke due to its high dependence on China. Inside AEC, Indonesia remained the leading hub. Malaysia had played the second leading role but was surpassed by Vietnam in later years.