Asia-Pacific Regional Cooperation and Integration Index

Highlights

A snapshot of ARCII results

Regional cooperation and integration is a multidimensional process for neighboring economies to expand linkages and coordinate policies aligned with common objectives. The framework of the Asia-Pacific Regional Cooperation and Integration Index (ARCII) was strengthened in response to the evolution of channels of regional cooperation and integration. New dimensions and indicators were added to the ARCII framework to better capture the underlying dynamics.

Excerpt from Asia-Pacific Regional Cooperation and Integration Index: Enhanced Framework, Analysis, and Applications. Access full report here.



Figure 1:

Overall ARCII and Dimensional Indexes—Asia and the Pacific

The gradual uptrend in estimates of the enhanced ARCII suggest that regional integration in Asia and the Pacific has made progress, with the index increasing a moderate 7% from 2006 to 2021.
Figure 2:

Distribution of ARCII by Income Group, 2021

  • ARCII results increase with income per capita, suggesting a link between regional integration and economic development.
  • High-income countries report much higher ARCII estimates, with an average close to 0.6 against 0.4 for other income groups.
Figure 3:

Indicator Contribution to the Overall ARCII Estimate—Asia and the Pacific, 2021

  • A central feature of the ARCII approach is that the relative contribution of each dimension and indicator is determined by a principal component analysis (PCA).
  • This approach extracts maximum common information from a set of individual indicators, shedding light on shared factors that explain dimensional and overall regional integration.
Figure 4:

Dimensional Contribution to the ARCII in Asia and the Pacific

  • The regional value chain, infrastructure and connectivity, and people and social integration dimensions continue to sustain regional integration, as seen in their high contributions to the overall ARCII estimates.
  • Money and finance integration remains the weakest dimension, having the smallest contribution to regional integration in Asia among the dimensions.
Figure 5:

Spatial Distribution of the ARCII in Asia and the Pacific, 2018