Global Integration Index

Highlights

A snapshot of GII results

Globalization has driven remarkable economic development in Asia and the Pacific, by expanding markets, improving resource allocation, and enhancing productivity. However, it has also amplified inequalities and accelerated climate change. Digitalization and environmental sustainability are opening new channels for cooperation, but geopolitical tensions and economic fragmentation necessitate a renewed evaluation of the attributes of globalization and regional integration.

Globalization is being redefined by new issues, from supply chain disruptions caused by COVID-19 to geopolitical tensions and the effects of digitalization. Assessing the costs and benefits of global integration underscores the need for accurate measures. Although proxies like trade and capital flows provide insights, they do not fully capture the complexities of globalization.

The Global Integration Index (GII) highlights this intracity by assessing regional contributions to the global measure. With 43 indicators across eight dimensions, the GII offers a comprehensive framework for understanding globalization. The eight dimensions include: trade and investment, money and finance, global value chains, people and social integration, infrastructure and connectivity, institutional arrangements, technology and digital connectivity, and environment. A Regional Integration Index (RII) compatible with the GII is also produced to assess how economies fare in both regional and global integration on the same footing.

Information from Measuring Globalization Framework, Analysis, And Implications. Access full report here.



Figure 1:

Global Integration Index, by region

  • Across dimensions, the EU is the most integrated region, followed by North America and Asia and the Pacific. Meanwhile, Africa tends to be least integrated.
Figure 2:

Distribution of GII Estimates, by region

  • There is significant variation in the level of global integration within regions, particularly in Asia and the Pacific. Conversely, the GII estimates for the EU exhibit a narrower range. In 2021, Singapore achieved the highest global integration score in Asia and the Pacific, comparable to prominent EU economies.
Figure 3:

Dimensional Indexes of Global Integration, by region

  • The impact of COVID-19 was significant in some dimensional indexes by region, particularly in trade and investment and people and social integration. The decline in both dimensions was significant across all regions, which have yet to reach their pre-pandemic levels of global integration.
Figure 4:

Regional, Extra-Regional, and Global Integration Indexes, by income group

  • Regional and extraregional integration are similar in high-income economies, whereas low-income economies are more integrated extraregionally. On average, the gap between regional and extraregional integration in high-income economies is narrower than in low- and middle-income economies. Still, high-income economies are better integrated regionally than other income groups—an observation that reflects the important presence of EU economies in this group.
Figure 5:

Regional, Extraregional, and Global Integration Indexes, by region

  • Trends in regional and extraregional integration in Asia and the Pacific differ from other regions. The breakdown by region highlights variations in the trajectory and contribution of regional and extraregional linkages. In Asia and the Pacific, integration with and outside the region has increased over time, with extraregional linkages slightly stronger than regional linkages. In contrast, the EU and North America are more integrated regionally than with outside regions.
Table 1:

Table on GII/RII Framework


ARCII = Asia-Pacific Regional Cooperation and Integration Index.

Notes: Worldwide normalization is used for all estimations, where the indicators are normalized using global maximum and minimum values across all regions. Higher values denote greater regional integration.

Source: ADB. Asia-Pacific Regional Cooperation and Integration Index Database. https://aric.adb.org/database/arcii (accessed May 2021).

  • Across dimensions, the EU is the most integrated region, followed by North America and Asia and the Pacific. Meanwhile, Africa tends to be least integrated.
  • There is significant variation in the level of global integration within regions, particularly in Asia and the Pacific. Conversely, the GII estimates for the EU exhibit a narrower range. In 2021, Singapore achieved the highest global integration score in Asia and the Pacific, comparable to prominent EU economies.

ARCII = Asia-Pacific Regional Cooperation and Integration Index.

Note: Higher values denote greater regional integration. Worldwide normalization is used for all estimations, where the indicators are normalized using global maximum and minimum values across all regions.

Source: Asian Development Bank. Asia-Pacific Regional Cooperation and Integration Index Database. https://aric.adb.org/database/arcii (accessed May 2021).


ARCII = Asia-Pacific Regional Cooperation and Integration Index, BIT = bilateral investment treaty, DTT = double taxation treaty, FDI = foreign direct investment, FTA = free trade agreement, ICT = information and communication technology, IEA = international environmental agreement, LSBCI = Liner Shipping Bilateral Connectivity Index.

Notes: The contribution of indicators to dimensional indexes is calculated for each region as the product of indicator’s weight and indicator normalized value. The contribution of dimensional index to overall ARCII estimate is calculated as the product of dimension’s weight and dimension’s normalized values.

Source: Asian Development Bank.

  • The impact of COVID-19 was significant in some dimensional indexes by region, particularly in trade and investment and people and social integration. The decline in both dimensions was significant across all regions, which have yet to reach their pre-pandemic levels of global integration.

ARCII = Asia-Pacific Regional Cooperation and Integration Index.

Note: Dimensional contribution is computed as the weight of the dimension multiplied by the dimensional index.

Source: Asian Development Bank. Asia-Pacific Regional Cooperation and Integration Index Database. https://aric.adb.org/database/arcii (accessed May 2021).

  • Regional and extraregional integration are similar in high-income economies, whereas low-income economies are more integrated extraregionally. On average, the gap between regional and extraregional integration in high-income economies is narrower than in low- and middle-income economies. Still, high-income economies are better integrated regionally than other income groups—an observation that reflects the important presence of EU economies in this group.

ARCII = Asia-Pacific Regional Cooperation and Integration Index.

Source: Asian Development Bank. Asia-Pacific Regional Cooperation and Integration Index Database. https://aric.adb.org/database/arcii (accessed May 2021).


  • Trends in regional and extraregional integration in Asia and the Pacific differ from other regions. The breakdown by region highlights variations in the trajectory and contribution of regional and extraregional linkages. In Asia and the Pacific, integration with and outside the region has increased over time, with extraregional linkages slightly stronger than regional linkages. In contrast, the EU and North America are more integrated regionally than with outside regions.

ARCII = Asia-Pacific Regional Cooperation and Integration Index, ICAO = International Civil Aviation Organization, UNCTAD = United Nations Conference on Trade and Development, UNESCAP = United Nations Economic and Social Commission for Asia and the Pacific, UN Comtrade = United Nations Commodity Trade Statistics Database, US = United States, WDI = World Development Indicators.

Notes: Highlighted rows in green indicate new indicators and dimensions included in the enhanced ARCII framework. Indicators marked with an asterisk are national-level indicators.

Source: Asian Development Bank.