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Asian Drivers

Transmission Channels

There are eight major channels through which the dynamism of the China and India has an impact on growth and distribution in low-income economies and regions:

  • Trade

  • Foreign Direct Investment (FDI)

  • Participation in global value chains

  • Aid-flows 

  • Financial flows 

  • Migration

  • Global and regional governance

  • The environment 

There are a number of features which are common to each of these vectors:

  • the scope of these impacts ranges from the micro-, through the meso- to the macro-level

  • the impacts of the Asian Drivers in each of these vectors may be both complementary and competitive for other economies

  • these impacts may be both direct and indirect

  • low-income economies are affected differentially by the competitiveness and growth of the Asian Drivers

  • these vectors are often inter-connected

  • each of these four vectors reflects not just flows of resources, but also the exercise of power.