Does Regional Integration Matter for Inclusive Growth? Evidence from the Multidimensional Regional Integration Index
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This study constructs a multidimensional regional integration index series that embodies six key facets of regional integration.
This study constructs a multidimensional regional integration index series that embodies six key facets of regional integration: trade and investment, money and finance, regional value chains, infrastructure and connectivity, movement of people, and institutional and social integration. The index confirms that regional integration is most advanced in the European Union with highest scores in all six dimensions. Asia comes second with the largest contribution from infrastructure and connectivity. Empirical analysis suggests regional integration exerts significant and positive influence on economic growth, income distribution, and poverty reduction, even when trade and financial openness is controlled.