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Regional economic integration and machine learning: Policy insights from the review of literature

Author

Listed:
  • De Lombaerde, Philippe
  • Naeher, Dominik
  • Vo, Hung Trung
  • Saber, Takfarinas

Abstract

Due to its focus on prediction rather than causal inference, machine learning has long been treated somewhat neglectfully in the economic literature. For several reasons, however, interest in machine learning has surged recently and is slowly finding its way into the econometric toolbox. Within the economic literature, regional integration has been one of the research areas at the forefront of this development, with various studies experimenting with different machine learning techniques to shed light on the complex dynamics governing regional integration processes. This paper provides the first systematic review of the literature that uses machine learning to study regional economic integration. The focus is twofold, first analysing studies along various thematic and methodological features (and the links between them), and then discussing the scope and nature of policy insights derived from the surveyed body of literature.

Suggested Citation

  • De Lombaerde, Philippe & Naeher, Dominik & Vo, Hung Trung & Saber, Takfarinas, 2023. "Regional economic integration and machine learning: Policy insights from the review of literature," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 1077-1097.
    • Handle: RePEc:eee:jpolmo:v:45:y:2023:i:5:p:1077-1097
    DOI: 10.1016/j.jpolmod.2023.07.001
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    More about this item

    Keywords

    Regional economic integration; International trade; Machine learning; Artificial intelligence; Literature review;
    All these keywords.

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F60 - International Economics - - Economic Impacts of Globalization - - - General

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