An Interdependence Analysis of the Trade Network of Key Exporting Countries: Focusing on the Asia-Pacific Region (U.S., China, India, Japan, and South Korea)

Abstract

This paper investigates the impact of economic crises on the trade networks of key economies in the Asia-Pacific region, specifically focusing on both trade volume contraction and structural reconfiguration. Utilizing network theory and a dataset covering 1992-2020, the study examines how crises, such as the Asian Financial Crisis and the Global Financial Crisis, affect the interdependence among the United States, China, Japan, South Korea, and India. We hypothesize that economic crises not only lead to a reduction in trade volumes but also cause a lasting reconfiguration of trade networks, with China’s centrality increasing as a result. Our findings confirm that while trade volumes temporarily contract during crises, the structural shifts within the trade network are more enduring. China’s role as a sub-hub has significantly strengthened, displacing Japan’s previous position in the network, particularly after the 2007-2008 crisis. These results suggest that economic crises permanently alter trade interdependence, with critical implications for global trade dynamics and policy-making. The study contributes to the literature on trade interdependence and offers insights for policymakers navigating post-crisis economic recovery and long-term trade strategy.