Island at the Crossroads: Hawai‘i’s Role in the Pacific and Global Economy

Patricia Yu ()
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Patricia Yu: University of Hawai‘i - West Oʻahu, Economics

Chapter 7 in Economic Development in Hawai‘i, 2026, pp 221-264 from Springer

Abstract: Abstract This chapter examines Hawai‘i’s multifaceted role in the Pacific and global economy, showing how the state, despite its small population and geographic isolation, functions as a strategic, economic, cultural, and environmental linchpin in the Indo-Pacific region. Positioned between the United States and Asia, Hawai‘i serves as a vital military hub through U.S. Indo-Pacific Command, while also hosting international defense exercises and innovation centers that influence regional security and technological development. Economically, Hawai‘i operates as a logistical gateway for trade, tourism, and educational services, with unique opportunities in niche exports and cultural branding. Its harbor and airport infrastructure support essential supply chains, while emerging sectors like agri-tech and climate-smart agriculture offer diversification potential. Beyond defense and trade, Hawai‘i’s leadership in climate diplomacy, cultural exchange, and Indigenous knowledge positions it as a model for sustainable development. Engagement with Pacific Island nations is rooted not only in geography but in shared heritage and responsibility, particularly through education, healthcare collaboration, and Compact of Free Association (COFA) policy reform. The Hawaiian diaspora adds global connectivity, while efforts in cultural diplomacy extend Hawai‘i’s influence as a center for storytelling, language revitalization, and Indigenous rights. Amid the risks of globalization such as economic volatility, cyber threats, and cultural commodification, Hawai‘i’s resilience strategies emphasize food security, renewable energy, data sovereignty, and ethical tourism. As global power shifts toward the Pacific, Hawai‘i stands not as a periphery, but as a pivotal influencer uniquely equipped to bridge global priorities with local values rooted in aloha ʻāina, kuleana, and pono.

Keywords: Indo-Pacific; U.S. Indo-Pacific Command; logistics; climate diplomacy; Pacific Islands; COFA; defense economy; Hawai‘i trade; diaspora engagement; cultural diplomacy; climate resilience; Indigenous knowledge; economic diversification; dual-use infrastructure; globalization risks (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/978-3-032-15689-1_7

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