Asian Economic Integration Report 2019/2020

Demographic Change, Productivity, and the Role of Technology

The Asian Economic Integration Report is an annual review of economic cooperation and integration that covers the 49 members of ADB in Asia and the Pacific. It documents progress made in trade and global value chains, cross-border investment, financial integration, the movement of people, and subregional cooperation. The theme chapter of this year’s report explores the potential of technology to boost productivity in aging economies. It also discusses how innovations can help turn demographic challenges into opportunities.

  • Older workers in Asia are now healthier with an average healthy life span (expectancy) of 63.8 years in 2017, from 57.2 years in 1990.



  • Older workers in Asia are now more educated. The average years of schooling of 55 to 64-year olds rose from 4.6 years during in 1990 to 7.8 years in 2015.



  • Asia remained top contributor to global trade as its regional value chains deepened.



  • Asia continues to be an attractive FDI destination as well as a formidable source of global FDI.



  • Portfolio debt investment grew moderately, and portfolio equity investment contracted, but banking activities hit a record high.



  • Remittance inflows into Asia reached $302 billion in 2018, accounting for 44% of global remittance inflows.



Contents:

Cover and Highlights

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Trade and Global Value Chains

  • Recent Trends in Asias Trade
  • Asias Intraregional Trade
  • Progress of Global and Regional Value Chains
  • Trade Conflict and Its Potential Impact
  • Updates on Regional Trade Policy
  • The Role of FTAs in Making Trade Work for All
  • ANNEX 1a: Impact of Technology on GVC Exports
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Cross-Border Investment

  • Trends and Patterns of Foreign Direct Investment in Asia
  • Outward Foreign Direct Investment
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Financial Integration

  • Asias Cross-Border Financial Assets and Liabilities
  • Outward Portfolio Investment
  • Inward Portfolio Investment
  • Subregional Portfolio Investment
  • Bank Holdings
  • Analysis Using Price Indicators
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Movement of People

  • Remittances
  • International Tourism and the Movement of Visitors
  • International Tourism Receipts
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Subregional Cooperation Initiatives

  • Central and West Asia: Central Asia Regional Economic Cooperation Program
  • Southeast Asia: Greater Mekong Subregion Program
  • East Asia: Support for RCI Initiatives under CAREC and GMS Subregional Programs and Knowledge-Sharing Activities
  • South Asia: South Asia Subregional Economic Cooperation
  • The Pacific: Partnering with the Private Sector to Expand Energy Access
  • The Asia-Pacific Regional Cooperation and Integration Index
  • Role of Economic Integration in Growth and Development
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Theme Chapter: "Demographic Change, Productivity, and the Role of Technology"

  • Introduction
  • Population Aging in Asia
  • Workforce Aging, Productivity, and the Role of Technology
  • Technology Options for Graying Asia
  • Assessing the Technology Needs of Countries Based on Age-Education Profiles
  • Turning the Demographic Headwind to a Tailwind-Policy Considerations
  • Background Papers
  • ANNEX 6a: Demographical Change, Technological Advance, and Growth: A Cross-Country Analysis
  • ANNEX 6b: Data and Methodology Used in Country Case Studies
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Statistical Appendix

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Infographics:

  • US Dollar Remains Dominant Currency
    4
    Jul
    2023

    US Dollar Remains Dominant Currency

    Trade and financial transactions continue being performed largely in US dollars. Over three-fourths of trade are in US dollars, while roughly 50% of financial transactions are in US dollars.

  • Evolving Patterns of Capital Flows in Asia and the Pacific
    4
    Aug
    2022

    Evolving Patterns of Capital Flows in Asia and the Pacific

    Nonresident capital inflows in Asia and the Pacific have doubled in the last decade, with notable changes in the composition and patterns of capital flows.

  • Global Semiconductor Chip Shortages
    14
    Jul
    2022

    Global Semiconductor Chip Shortages

    Producing semiconductors are highly specialized and geographically concentrated, rendering the sector vulnerable to supply chain disruptions. To ensure supply, an enabling environment research and development (R&D), investments, and skills development are key areas of government intervention.

  • The Regional Comprehensive Economic Partnership
    20
    May
    2022

    The Regional Comprehensive Economic Partnership

    RCEP is the most ambitious application of a rules-based trading system among economies in Asia and the Pacific.

  • Resilience of remittances to Asia and the Pacific
    5
    Apr
    2022

    Resilience of remittances to Asia and the Pacific

    Remittance inflows to Asia and the Pacific displayed resilience despite the pandemic, propping up limited fiscal space and providing a lifeline to many affected households in the region. Several factors have contributed to this, as explained in Chapter 5 of the AEIR 2022.