Asian Development Bank Says Asian Economic Integration Is Good For U.S. Economy

Manila, Philippines (AHN) - Increasing integration among Asian economies is good not only for Asia, but also for the U.S. and the rest of the world, the Asian Development Bank (ADB) says in a new study.

The integration offers a new platform to promote growth, strengthen trade links, and reduce poverty, the ADB said in a new study, entitled "Emerging Asian Regionalism: A Partnership for Shared Prosperity."

The study also suggested that while Asian economic integration is market-led, to tap the full potential of regional interdependence, Asian economies need to boost their ties through closer dialogue and policy coordination.

"This study is an excellent analysis of Asian regionalism and shows how economic integration and cooperation can help reduce transaction costs and increase efficiency, providing an important platform for poverty reduction in the region," said World Bank Chief Economist Justin Lin at a seminar on Tuesday where the ADB study was presented.

"Economic integration in Asia is becoming increasingly important to global growth and managing shared risks in the region," said Jong-Wha Lee, head of ADB's Office of Regional Economic Integration, according to an ADB statement.

The study highlights that Asia is less integrated in finance than in trade but financial markets are now larger, deeper, and more sophisticated than they were a decade ago. With the growth of trade and financial ties, Asia's macroeconomic interdependence has also increased.

The region faces a challenging period ahead as global payment imbalances appear increasingly unsustainable, the financial turmoil unfolds and the global economic slowdown deepens, the statement added.