Abstract
We develop an index to measure the degree of regional integration in Asia and the Pacific (48 economies in six subregions). The index comprises 26 indicators in six dimensions of regional integration, i.e., trade and investment, money and finance, regional value chains, infrastructure and connectivity, free movement of people, and institutional and social integration. We use principal component analysis to apportion a weight to each dimension and indicator to construct composite indexes. The resulting indexes help assess the state of regional integration on diverse socioeconomic dimensions, evaluate progress against goals, identify strengths and weaknesses, and track progress. Cross-country, cross-regional comparisons also allow policy makers to prioritize areas for further efforts.
Highlights
Regional integration is a process in which a group of neighboring economies expand mutually beneficial economic activities and coordinate policies to pursue common economic and/or political goals
We develop an index to measure the degree of regional integration in Asia and the Pacific (48 economies in six subregions)
The present study proposes a regional integration index for Asia and the Pacific (Asia-Pacific Regional Integration Index, i.e. APRII) that can assess the degree of integration on different socioeconomic dimensions across 48 economies and six subregions, compare strengths and weaknesses, and track progress
Summary
Regional integration is a process in which a group of neighboring economies expand mutually beneficial economic activities and coordinate policies to pursue common economic and/or political goals. The APRII comprises 26 indicators that measure various aspects of regional integration along six dimensions: trade and investment integration, money and finance integration, regional value chains, infrastructure and connectivity, free movement of people, and institutional and social integration. None of these components is present in the Africa Regional Integration Index.3 Another feature of APRII is structural, that is, in the construction of the composite index; the Africa Regional Integration Index adopts an arithmetic average to construct dimensional and overall indexes whereby all components are weighted in the aggregation. This equal weighting works well if all indicators are uncorrelated and all dimensions have an equal number of indicators.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
