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Revisiting the Twin-Hub Trade Pattern in East Asia

Author

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  • Chun-Chien Kuo

    (Department of International Business National Taipei University of Business No. 321, Sec. 1, Jinan Rd., Zhongzheng District Taipei City 10051, Taiwan)

  • Deng-Shing Huang

    (Institute of Economics/Center for Asia-Pacific Area Studies, Academia Sinica No. 128, Sec. 2, Academia Rd., Nangang Dist. Taipei City 115, Taiwan)

  • Tzu-Han Yang

    (Department of Public Finance National Taipei University No. 151, Daxue Rd., Sanxia Dist. New Taipei City 237, Taiwan)

Abstract

Transport advantage, assembly hub under global value chains, technology advantage, and home-market effect are the four main factors contributing to the emergence of trade hubs in East Asia. Using a region-specific trade “hub-ness” measure, we examine the evolution of trade hubs in the East Asia. A China-Japan twin-hub pattern was found in the 1990s, but the twin hub began to divide in the beginning of the 21st century because of a rising China and declining Japan. We also show that ASEAN as an integrated region may lead to the emergence of another trade hub in East Asia, because of the enlarged ASEAN home-market-size effect, for the highly fragmented automatic data processing industry.

Suggested Citation

  • Chun-Chien Kuo & Deng-Shing Huang & Tzu-Han Yang, 2019. "Revisiting the Twin-Hub Trade Pattern in East Asia," Asian Economic Papers, MIT Press, vol. 18(1), pages 185-199, Winter/Sp.
    • Handle: RePEc:tpr:asiaec:v:18:y:2019:i:1:p:185-199
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    References listed on IDEAS

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