Asian Economic Integration Report 2018
Toward Optimal Provision of Regional Public Goods in Asia and the Pacific
This publication is the annual report of the Asian Development Bank (ADB) on Asia’s progress in regional cooperation and integration. It covers ADB’s 48 regional members and analyzes regional and global economic linkages. This year’s special chapter, “Toward Optimal Provision of Regional Public Goods in Asia and the Pacific,” examines how collective action among countries can help find solutions to growing transnational development challenges. It discusses how to best provide regional public goods (RPGs) that transcend the so-called “collective action problem,” which occurs when individual interests are too weak on their own to drive cooperation on common issues. The chapter suggests that multilateral development banks should act as honest broker in enhancing mutual trust and facilitating regional cooperation for RPGs.
The Asia and Pacific region maintains healthy economic growth outlook.
The Asia-Pacific Regional Cooperation and Integration Index shows that infrastructure and connectivity are the key drivers of regional integration in Asia.
Asia continues to lead a recovery in global trade.
Asia’s trade integration remained strong, providing the region a shield from potential headwinds.
Despite a slowdown in inward FDI to Asia, intraregional FDI continues to rise.
Global outward FDI decreased 2.9% in 2017, primarily due to a drop in FDI from developed economies; outward investment from Asia weakened only 1.4%.
Asia remains the largest source of international migrants.
A record $275.5 billion in remittances were channeled to Asia in 2017.
Tourism is the main source of income for many economies in the Pacific and Southeast Asia.
Intraregional tourism continues to expand but a growing share of Asian tourists is heading to non-Asian destinations.
Asia’s local bond and equity returns have become more sensitive to global shocks since the US monetary policy normalization began.
Increasing sensitivity to global shocks highlights Asia’s strong global links and reflects uncertainties surrounding the changes in global financial conditions.
Multilateral development banks can help increase regional public goods via knowledge generation, financing, enhancing mutual trust, and facilitating regional cooperation for the provision of regional public goods.
More effort is needed in measuring spillover benefits of regional public goods and identifying potential beneficiary countries.
Contents:
Infographics:
4Feb2021What is a travel bubble?
A travel bubble is an agreement between two or more countries to open their borders to visitors from a partner economy (or economies).
4Feb2021What factors are important in establishing travel bubbles?
The volume of total trade and the number of international visitors between prospective partners are key factors in establishing a travel bubble.
4Feb2021What is the role of ADB in reviving international tourism?
ADB's engagement with global and regional partners and organizations is key in reviving interest and confidence in travel and tourism.
21Sep2020Food Security in Asia and the Pacific, COVID-19 Pandemic, and the Role of Policy
As the COVID-19 pandemic increases food security risks in Asia and the Pacific, this challenge also calls for a bolder role for policy and regional cooperation, as featured in ADB Briefs No. 139.
25Jun2020Patterns of Asia's Intraregional Investment in 2018
In 2018, amid Asian equity markets’ subdued performance, moderating global growth, and global trade tensions, Asia’s intraregional portfolio debt investment grew moderately, while intraregional portfolio equity investment and cross-border bank claims both contracted.
5May2020Greenfield FDI and Mergers and Acquisitions
The year 2018 saw a sharp increase in greenfield FDI and M&As in Asia, after declining in 2017.
