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

Note: The calculation of ARCII scores varies between thematic indexes (ARCII dimensions). They are designed for interpretation of the individual ARCII dimension, not for direct comparison of scores between dimensions. Disclaimer: This map was produced by the cartography services of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgement on the legal status of any territory, or any other endorsement or acceptance of such boundaries, colors, denominations, or information. A: Overall ARCII Lothar Linde QGIS 3.18.1-Zürich image/svg+xml 2021-07-26T14:41:55 Lothar Linde QGIS 3.18.1-Zürich image/svg+xml
  • An economy’s geographic location can be an important factor its ability to forge linkages with other economies in the region.
  • The overall ARCII shows that neighboring economies have similar index estimates.
Table 1:

Dimensions and Indicators in the Enhanced ARCII 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).

  • 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.
  • 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.

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.

  • 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.

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).

  • 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.

Note: The calculation of ARCII scores varies between thematic indexes (ARCII dimensions). They are designed for interpretation of the individual ARCII dimension, not for direct comparison of scores between dimensions. Disclaimer: This map was produced by the cartography services of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgement on the legal status of any territory, or any other endorsement or acceptance of such boundaries, colors, denominations, or information. A: Overall ARCII Lothar Linde QGIS 3.18.1-Zürich image/svg+xml 2021-07-26T14:41:55 Lothar Linde QGIS 3.18.1-Zürich image/svg+xml

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).


  • An economy’s geographic location can be an important factor its ability to forge linkages with other economies in the region.
  • The overall ARCII shows that neighboring economies have similar index estimates.

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.