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Does Regional Cooperation and Integration Contribute to Inclusive Development? A Guide to Policymaking

Author

Listed:
  • Rahul Sen

    (Auckland University of Technology)

  • Sanchita Basu Das

    (Asian Development Bank)

Abstract

Regional cooperation and integration (RCI) encompasses trade and investment, infrastructure connectivity, institutions, people on the move, regional value chains, diverse environments, and digital integration. This paper assesses the impact of RCI from 2006 to 2023 on job creation and income inequality, contributing to the empirical literature on regional cooperation in Asia and the Pacific. Using ADB’s Asia-Pacific Regional Cooperation and Integration Index, the analysis focuses on four RCI dimensions—trade, infrastructure, institutions, and people and social mobility—and examines intra- and inter-regional cooperation. It finds that RCI improves job creation across the region, with infrastructure playing a greater role in driving intra-regional gains. But it also finds more nuanced effects on inequality: while RCI does not uniformly reduce inequality, the institutional dimension is found to significantly lower inequality at the interregional level. Overall, these evidence-based insights can guide the design and prioritization of RCI agendas, particularly by strengthening infrastructure connectivity and institutional cooperation to promote inclusive development in Asia and the Pacific.

Suggested Citation

  • Rahul Sen & Sanchita Basu Das, 2026. "Does Regional Cooperation and Integration Contribute to Inclusive Development? A Guide to Policymaking," ADB Economics Working Paper Series 861, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:023612
    DOI: 10.22617/WPS260409-2
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    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • F15 - International Economics - - Trade - - - Economic Integration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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