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Tracking Regional Integration in Northeast Asia: A composite index approach

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  • Cyn-Young Park

    (Asian Development Bank (ADB))

Abstract

In this paper, we employed a composite index approach in assessing regional integration in Asia and the Pacific, with special focus on Northeast Asia. Findings suggest that the pace of integration in Northeast Asia is broadly trending upward over the 2006 – 2016 sample period, catching up to the level of most integrated region in Southeast Asia. Of the six dimensions featured in the composite index, we find that trade and investment and movement of people are the main drivers of regional integration, while the money and finance dimension was the weakest link. An in-depth analysis of Northeast Asia indicates that infrastructure and connectivity as well as institutional and social integration drive the subregion’s integration with entire Asia. By contrast, integration within the subregion is lowest in terms of institutional and social integration, suggesting the dearth of formal integration mechanisms in Northeast Asia. Finally, country-level analysis for the subregion suggests that higher-income economies (such as People’s Republic of China, Japan, and Republic of Korea) show in general a broader regional integration compared to more narrowly-based subregional integration in Democratic People’s Republic of Korea and Mongolia.

Suggested Citation

  • Cyn-Young Park, 2021. "Tracking Regional Integration in Northeast Asia: A composite index approach," Discussion papers 2106, ERINA - Economic Research Institute for Northeast Asia.
    • Handle: RePEc:eri:dpaper:2106
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    international migration; labor mobility; regional economic integration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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