This paper examines empirically whether and how regional integration leads to
convergence and growth amongst developing countries. Using standard growth models for
nearly 100 developing countries over 1970-2004 we cannot establish robust growth effects
of regional integration as such at the aggregated level of analysis even after using
alternative measures of regional integration. However, because we find that trade and FDI
promote growth, and because regional integration tends to increase trade and FDI, regional …

This note is work in progress and examines empirically whether and how regional
integration leads to convergence and growth amongst developing countries. Using standard
growth models for nearly 100 developing countries over 1970-2004 we cannot establish
robust growth effects of regional integration at the aggregated level of analysis even after
using alternative measurements of regional integration. Yet, country-specific growth
diagnostics do suggest that regional integration can be a key if not binding constraint to …