Production Specialization and Trade Blocs

Production Specialization and Trade Blocs

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.