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Asia-Pacific regional integration index: Construction, interpretation, and comparison

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  • Huh, Hyeon-Seung
  • Park, Cyn-Young

Abstract

We develop a composite index to measure the degree of regional integration in Asia. The index comprises 26 indicators in six dimensions of regional integration, namely, 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 indicator to construct dimensional sub-indexes, then follow the same procedure to weight the sub-indexes to construct the overall index. Asia is shown to be relatively well integrated along dimensions of trade and investment and the free movement of people, not so well integrated along the institutional and social dimension. Overall, Asia is somewhat more integrated than South America and Africa, but much less integrated than the European Union.

Suggested Citation

  • Huh, Hyeon-Seung & Park, Cyn-Young, 2018. "Asia-Pacific regional integration index: Construction, interpretation, and comparison," Journal of Asian Economics, Elsevier, vol. 54(C), pages 22-38.
    • Handle: RePEc:eee:asieco:v:54:y:2018:i:c:p:22-38
    DOI: 10.1016/j.asieco.2017.12.001
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    Cited by:

    1. Anita Prakash (ed.), 2019. "Asia-Europe Connectivity Vision 2025: Challenges and Opportunities," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 978-602-8660-91-4, July.
    2. Maria O. Kazaryan, 2022. "Оценка Уровня Интеграции В Странах Снг+ В 2010-2020 Гг," Russian Economic Development (in Russian), Gaidar Institute for Economic Policy, issue 10, pages 35-40, October.
    3. Chartouni Carole & Holzmann Robert & Paez Gustavo N., 2020. "Not everyone is engaged: an innovative approach to measure engagement levels on the labor market," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-25, March.
    4. Witada Anukoonwattaka & Pedro Romao & Richard S. Lobo & Preety Bhogal & Thomas Bentze & Arushi Vaishnav, 2021. "Digital economy integration in Asia and the Pacific: insights from DigiSRII 1.0," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 28(2), pages 113-148, December.
    5. Park, Cyn-Young & Claveria, Racquel, 2018. "Does Regional Integration Matter for Inclusive Growth? Evidence from the Multidimensional Regional Integration Index," ADB Economics Working Paper Series 559, Asian Development Bank.
    6. Kawasaki, Kentaro & Sato, Kiyotaka, 2021. "A new assessment of economic integration in East Asia: Application of an industry-specific G-PPP model," Japan and the World Economy, Elsevier, vol. 60(C).
    7. Krishna P. Timsina & Richard J. Culas, 2020. "Impacts of Australia’s free trade agreements on trade in agricultural products: an aggregative and disaggregative analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 889-919, July.
    8. Madhur Bhatia & Rachita Gulati, 2020. "Assessing the Quality of Bank Boards: Evidence from the Indian Banking Industry," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(4), pages 409-431, November.
    9. Enoch Kwaw-Nimeson & Ze Tian, 2023. "Institutional Quality, Foreign Direct Investment, and Regional Integration: Empirical Evidence From CEN-SAD," SAGE Open, , vol. 13(1), pages 21582440221, January.
    10. Hyeon‐Seung Huh & Cyn‐Young Park, 2021. "A new index of globalisation: Measuring impacts of integration on economic growth and income inequality," The World Economy, Wiley Blackwell, vol. 44(2), pages 409-443, February.
    11. Dayong Zhang & Wanli Zhao & Fei Wu & Qiang Ji, 2020. "Financial Integration in Asia: A Systemic View on Currency Markets," Asian Economic Papers, MIT Press, vol. 19(2), pages 41-58, Summer.
    12. Gengzhi Huang & Hang Li & Siyue Chen & Hongou Zhang & Biao He, 2024. "Dynamic Analysis of Regional Integration Development: Comprehensive Evaluation, Evolutionary Trend, and Driving Factors," Land, MDPI, vol. 13(1), pages 1-26, January.
    13. Dezhong Duan & Yang Zhang & Ying Chen & Debin Du, 2019. "Regional Integration in the Inter-City Technology Transfer System of the Yangtze River Delta, China," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    14. Ullah, Atta & Pinglu, Chen & Ullah, Saif & Qaisar, Zahid Hussain & Qian, Ningyu, 2022. "The dynamic nexus of E-Government, and sustainable development: Moderating role of multi-dimensional regional integration index in Belt and Road partner countries," Technology in Society, Elsevier, vol. 68(C).
    15. Ren, Yi & Tian, Yuan & Xiao, Xue, 2022. "Spatial effects of transportation infrastructure on the development of urban agglomeration integration: Evidence from the Yangtze River Economic Belt," Journal of Transport Geography, Elsevier, vol. 104(C).
    16. Liu, Tao & Wang, Xiaosong & Woo, Wing Thye, 2022. "The rise of Renminbi in Asia: Evidence from Network Analysis and SWIFT dataset," Journal of Asian Economics, Elsevier, vol. 78(C).
    17. Cyn-Young Park & Racquel Claveria, 2018. "Constructing the Asia-Pacific Regional Cooperation and Integration Index: A Panel Approach," Working Papers id:12813, eSocialSciences.
    18. Cyn-Young Park, 2021. "Tracking Regional Integration in Northeast Asia: A composite index approach," Discussion papers 2106, ERINA - Economic Research Institute for Northeast Asia.

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    More about this item

    Keywords

    Asia; Regional integration; Composite index;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F3 - International Economics - - International Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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