I. Introduction 1

II. Literature Review 2

  A. Transmission Channels of Multidimensional RCI on Job Creation 3

  B. Transmission Channels of Multidimensional RCI on Income Inequality 4

  C. Empirical Evidence in Asia and the Pacific Based on Core Pillars of RCI 5

    Trade and investment 5

    Infrastructure connectivity 5

    Infrastructure connectivity 6

    People mobility and institutional frameworks 6

  D. Empirical Evidence of Multidimensional RCI in a Cross-Country Context 7

III. State of RCI in Asia and the Pacific 7

IV. Data and Empirical Methodology 10

V. Empirical Results 14

  A. Baseline Model Results 14

    RCI and job creation 14

    RCI and income inequality 14

  B. Endogeneity Check and IV Model Results 15

  C. Robustness Checks 17

VI. Discussion of Results in Asia and Pacific Context 17

  A. RCI dimensions and job creation 18

    Institutions RCI and job creation 18

    Infrastructure RCI and job creation 19

    People and social mobility RCI and job creation 20

    Trade and investment RCI and job creation 21

  B. RCI Dimensions and Income Inequality 22

    Institutions RCI and income inequality 22

    Infrastructure RCI and income inequality 23

    People and social mobility RCI and income inequality 23

    Trade and investment RCI and income inequality 24

VII. Conclusions and Policy Implications 25