Assessing the global value chain trade structure of the EU, RCEP and TPP through trade network analysis

Using network analysis, the study examines the trade structure of the three largest trade blocs, the European Union (EU), the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The use of intermediate goods exports data from the OECD TIVA database to assess the trade flow among member countries. It employs centrality measures such as centrality degree, eigenvector, betweenness, and closeness to identify the complex network flow of trade and the extent of trade concentration to countries within each bloc. The results reveal that the EU and RCEP supply chains are dominated by Germany and China, respectively. However, other countries are also acting as a central hub in the EU bloc. Similarly, the CPTPP supply chain is governed by nations such as South Korea, Japan, and Canada. Overall, the EU and RCEP have a dense trade network where countries have deep integration for efficient trade flow. In contrast, in CPTPP, the developed countries have higher participation, and the underdeveloped countries have less participation in trade flow. The findings provide important implications that high dependence on the central hub potentially poses the vulnerability of external/ internal shock in regional trade partnerships. Furthermore, high-quality standards favour developed nations and hinder underdeveloped nations' participation in regional trade partnerships.