Introduction
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The integration and interlinkage of national markets through regional cooperation and integration (RCI) can add a set of drivers to productivity growth. The first chapter of this book reviews the drivers, instruments and tools that link RCI to productivity. Multilateral institutions have identified key drivers of productivity for emerging economies. This study first characterizes types of productivity for the reader. The related literature identifies key drivers of Total Factor Productivity (TFP) relating both to macro-and microeconomics. On the real, microeconomy side – the sole focus of this book – trade openness, foreign direct investment flows, trade-related infrastructure, quality of (skilled) labor inputs and the efficient allocation of human resources, economic diversification through structural change policies, financial sector development, and the business-oriented institutional and regulatory framework explain most of TFP growth.

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