Regional Economic Integration in Asia: Challenges and Recommended Policies

Abstract

Regional economic integration is one of the most effective ways of fostering stability, addressing regional challenges, and increasing rates of economic growth. Strengthening regional cooperation and integration in different Asian sub-regions offers great potential for eliminating poverty and achieving inclusive and sustainable development. Hurdles remain, however, for further integration. The willingness to commit to "unity in diversity" is important to overcoming this, requiring the acceptance of cultural, linguistic, social, religious, and political differences. Such complex unities have been achieved in the European Union (EU) and elsewhere (Fella, 2002). Currently, in most Asian sub-regions, such political ambitions for economic integration have been scarce. This implies that a more cautious approach is needed in Asia than in other places. However, by studying the European context, we can derive valuable lessons for better fostering economic integration. Regional economic integration should first ensure the maximization of benefits for all participants. With this, complete cooperation is required to develop an effective and uniform regional business environment. Second, a well-developed infrastructure with an absence of trade barriers is needed. Various Asian sub-regions (e.g., Central and South Asia), however, suffer from a lack of infrastructure, which hinders trade opportunities. Difficulties in accessing capital also presents a key obstacle. In this regard, the role of infrastructure financing is very important. In the EU, their European Investment Bank maintains equitable financing for intra-EU projects. Open engagements with partner countries also play a key role. Third, over the past 30 years, different institutional mechanisms have sprung into existence in Europe that have created the basis for strategic economic integration. Such institutional mechanisms and initiatives are needed in Asia.

Analyzing the Dynamics of Islamic Stock Market Indices in Several Muslim Countries

“…International or regional economic integration should aim to provide benefits to all participating countries. The requirements are a complete cooperation mechanism and an effective and uniform business environment, the provision of adequate financial infrastructure without trade barriers (Hesary et al, 2020).…”

“…Likewise in Central and South Asian countries, the results of research by Hesary et al, (2020) show that financial integration among members of the Central Asian and South Asian co-operation has not materialized due to obstacles, lack of infrastructure support, resulting in barriers to entry. investment from abroad.…”

Corporate Co-Agglomeration and Green Economy Efficiency in China

“…The essence of corporate co-agglomeration is the coordination of spatial locations and a geographic and spatial dimensional “synergetic clustering” (Jacobs et al, 2013 ; Gaubert, 2018 ). The co-agglomeration of corporates in manufacturing and producer services compresses the spatial industrial integration distances and allows for more interactive relationships between the two through mutual interaction and integration (Mansour and Kanso, 2017 ; Taghizadeh-Hesary et al, 2020 ).…”

[Guest Editors’ Remarks] Special Theme 2: Asian and European Economic Integration at a Crossroads

“…This 1)special issue is dedicated to the analysis of Asian and European integration. In Asia, the integration level among countries is not very high (Taghizadeh-Hesary et al, 2020) only exception is the Association of Southeast Asian Nations (ASEAN). Several initiatives have been considered within ASEAN to further strengthen economic integration to enhance, in the long run, the construction of an ASEAN currency area.…”