Asia-Pacific Regional Integration Index: Construction, Interpretation, and Comparison

35 Pages Posted: 12 Jun 2017

See all articles by Hyeon‐Seung Huh

Hyeon‐Seung Huh

Yonsei University - Department of Economics

Cyn-Young Park

Asian Development Bank

Date Written: April 2017

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.

Keywords: Asia, composite index, regional integration

JEL Classification: F10, F30, O10, O50

Suggested Citation

Huh, Hyeon-Seung and Park, Cyn-Young, Asia-Pacific Regional Integration Index: Construction, Interpretation, and Comparison (April 2017). Asian Development Bank Economics Working Paper Series No. 511. Available at SSRN: https://ssrn.com/abstract=2982755 or http://dx.doi.org/10.2139/ssrn.2982755

Hyeon-Seung Huh

Yonsei University - Department of Economics ( email )

50 Yonsei-Ro
Seoul, 120-749
Korea

Cyn-Young Park (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines
(632) 632-5473 (Phone)

HOME PAGE: http://www.adb.org

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