This paper explores the linkages between regional integration and income convergence in Asian economies. Based on the concept of ‘horizontal convergence’, the rate at which a country closes the gap with the wealthiest economy in a region, we use a multidimensional index of regional integration (ARCII), to explore these linkages in a panel data model. We address possible endogeneity through an instrumental variable approach using a spatial lag model and explore the contribution of different RCI dimensions. Preliminary results suggest a positive and significant effect of regional integration on horizontal convergence for the region.

JEL codes: F15, O15