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Regional integration amid global fragmentation

Author

Listed:
  • Ilhyock Shim
  • Torsten Ehlers
  • Fredy Gamboa
  • Han Qiu

Abstract

Regional integration among emerging market economies complements global integration rather than substituting for it, which implies that strong regional ties act as buffers against global fragmentation.Emerging Asia is more integrated than other emerging market regions due to a higher share of manufacturing with complex supply chains and the presence of regional financial centres in Hong Kong SAR and Singapore.Trade and banking integration reinforce each other, and regional payment system integration has positive externalities by reducing the transaction costs of trade and enabling cross-border banking services.Tapping the significant potential for further regional integration requires concerted efforts on cross-border cooperation and the implementation of targeted trade and banking sector liberalisation policies.

Suggested Citation

  • Ilhyock Shim & Torsten Ehlers & Fredy Gamboa & Han Qiu, 2025. "Regional integration amid global fragmentation," BIS Bulletins 102, Bank for International Settlements.
    • Handle: RePEc:bis:bisblt:102
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    References listed on IDEAS

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    1. Se-Jik Kim & Hyun Song Shin, 2023. "Theory of supply chains: a working capital approach," BIS Working Papers 1070, Bank for International Settlements.
    2. Broner, Fernando & Didier, Tatiana & Schmukler, Sergio L. & von Peter, Goetz, 2023. "Bilateral international investments: The big sur?," Journal of International Economics, Elsevier, vol. 145(C).
    3. Dingemans, Alfonso & Ross, César, 2012. "Free trade agreements in Latin America since 1990: an evaluation of export diversification," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
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    Cited by:

    1. Michael Chui & Leonardo Gambacorta & Emanuel Kohlscheen & Han Qiu, 2025. "Navigating global headwinds: Africa's trade landscape and growth opportunities," BIS Bulletins 109, Bank for International Settlements.
    2. Paolo Cavallino & Torsten Ehlers & Fredy Gamboa & Rafael Guerra & Berenice Martinez & Ilhyock Shim, 2026. "Capital flows, exchange rates and financial conditions in EMEs in an evolving international monetary system," BIS Papers chapters, in: Bank for International Settlements (ed.), Capital flows, exchange rates and financial conditions in EMEs in an evolving international monetary system, volume 127, pages 6-62, Bank for International Settlements.

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