Asian Economic Integration Report 2017
The Era of Financial Interconnectedness: How Can Asia Strengthen Financial Resilience?
The Asian Economic Integration Report 2017 is ADB’s annual report on Asia’s progress in regional cooperation and integration (RCI). It covers ADB’s 48 regional members and analyzes regional as well as global economic linkages. This year’s special theme chapter, “The Era of Financial Interconnectedness: How Can Asia Strengthen Financial Resilience?” reexamines the region’s ability to absorb financial shocks and avoid instability. The report also introduces an RCI composite index to help monitor and evaluate RCI progress in the region. The Asia-Pacific Regional Cooperation and Integration Index combines six RCI components: trade and investment, money and finance, regional value chains, infrastructure connectivity, movement of people, and institutional and social integration.
The newly-introduced Asia-Pacific Regional Cooperation and Integration Index (ARCII) allows Asian economies to track and monitor the progress of their regional integration efforts across six different socioeconomic dimensions.
Asia remains more financially linked to the rest of the world than to itself.
Amid a slowdown in total inward foreign direct investment to Asia, intraregional investment flows continue to rise.
Firms in Asia are bolstering their status as global investors.
A large part of intraregional FDI is greenfield investment, mainly in manufacturing, while M&As; are more dominant for FDI going outside the region.
Asia’s intraregional trade continued to strengthen, providing a buffer against potential headwinds from global trade and policy uncertainties.
Tourism is growing rapidly in the region, both in terms of the number of tourists and the amount of tourism receipts.
Remittances to Asia declined in 2016, but its impact within the region was varied.
Twenty years after the Asian financial crisis, Asia stands strong—with more flexible exchange rates, higher foreign reserves, healthier financial systems, stronger regulations, deeper capital markets, and better regional financial cooperation mechanisms.
Growing financial interconnectedness can increase vulnerabilities to external shocks, financial contagion, or liquidity risks stemming from cross-border bank lending.
On 25 October 2017, a team of ADB researchers, led by Chief Economist Yasuyuki Sawada, presented the key findings of the AEIR 2017 at Lee Kuan Yew School of Public Policy in Singapore and to international and regional media. See news release.
Videos:
Opening Remarks by Yasuyuki Sawada, Chief Economist and Director General, ADBPresentation on the Key Findings of AEIR 2017: "The Era of Financial Interconnectedness—How can Asia Strengthen Financial Resilience?" by Jong Woo Kang, Principal Economist, ADBPanel discussion chaired by Yasuyuki Sawada, Chief Economist and Director General, ADBEvent Photos:
26Oct201725Oct20178Feb2018How can Asia strengthen financial resilience?
Continued support for financial reforms is crucial to ensuring Asia's financial resilience.
31Jan2018New index measures progress of RCI in Asia
The newly-introduced ARCII aims to measure the extent and progress of regional cooperation and integration in Asia and the Pacific.
29Jan2018Greater intraregional tourism continues to visit Asia
Tourism is looking up in Asia, with increased number of travelers and tourism receipts
24Jan2018Financial Integration in Asia
Asia's cross-border assets continue to grow, further strengthening its linkages globally.
22Jan2018Foreign Direct Investment in Asia
Asia's is increasingly a magnet of foreign direct investment and a prominent global investor
18Jan2018Free Trade Agreements in Asia
ARIC's infographic illustrates the latest trends and insights on Asia's FTA landscape.
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