Asian Drivers

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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.