Asia Regional Integration Center

Prof. Peter Warr, The Australian National University, estimates the economic impacts of the second Mekong River Bridge between Thailand and Lao PDR. Results suggest that transport cost reductions due to improvement of inter-regional transport facilities will produce a large increase in inter-regional trade volumes in both directions. Please confirm participation with Ms. Liza Cruz at mlscruz@adb.org.

Prof. Andrew Rose, University of California, Berkeley, finds that apart from rising trade, inflation targeting promotes business cycle synchronization and thus can be useful in easing the transition towards monetary union. This result challenges the oft-cited benefit that inflation targeting provides insulation from foreign shocks. Please confirm participation with Ms. Liza Cruz at mlscruz@adb.org.

Local currency bond markets are set to expand this year with several governments likely to sell more debt to finance their economic stimulus packages. Companies are also expected to turn to local markets to refinance or raise fresh capital, says the latest issue of Asia Bond Monitor.    Read the news release and full report.   

Within the next few decades, Asia is poised to become the oldest region in the world. A rapidly aging population can have adverse effects on economic performance and prospects through a decrease in the labor force, lower saving and investment rates, and spiraling pension and health care costs. In this paper, Jayant Menon and Anna Melendez-Nakamura examine the impact of aging on the region and discuss policy options to deal with its challenges. To prevent an “aging crisis” in Asia, policymakers need to start refashioning their institutions and policies to influence behavior, and they need to do so quickly.

Within the next few decades, Asia is poised to become the oldest region in the world. A rapidly aging population can have adverse effects on economic performance and prospects through a decrease in the labor force, lower saving and investment rates, and spiraling pension and health care costs. In this paper, Jayant Menon and Anna Melendez-Nakamura examine the impact of aging on the region and discuss policy options to deal with its challenges. To prevent an “aging crisis” in Asia, policymakers need to start refashioning their institutions and policies to influence behavior, and they need to do so quickly.

In this paper, Jong-Wha Lee and Ju Hyun Pyun examine the effect of trade integration on military conflict. Based on a large panel data set from 1950 to 2000, they find an increase in bilateral trade interdependence and global trade openness significantly promotes peace. They also find the impact of trade integration on military conflict varies depending on the geographical proximity: bilateral trade interdependence promotes peace more significantly for contiguous countries, while global trade openness contributes more to peace between distant countries. Read more.

This joint ADB and ADBI flagship study addresses major challenges in developing regional infrastructure—both hard and soft—in Asia, specifically exploring the costs and benefits, financing requirements, and infrastructure priorities in the region. It evaluates existing regional infrastructure programs, policies, and institutions, and makes recommendations to meet these challenges. The key message of the book is that now is the time to forge ahead with the goal of integrating this vast and diverse region—to foster lasting prosperity for all its citizens—through the building of pan-Asian infrastructure connectivity. Read more.

Stephen Wells and Lotte Schou-Zibell examine India's bond market focusing on its salient characteristics, reforms, and development obstacles. They compare its market to emerging East Asian neighbors, discuss the importance to development of learning from the innovations and experiences of others as well as policies that can help further develop the Indian bond market and meet the needs of its firms and investors. Read more.