The Asian Drivers: financial flows into and out of Asia. Implications for developing countries

This paper analyses recent trends in financial flows to and from Asia, and their implications for developing countries. It focuses mainly on financial trends in China and India, two countries that can be regarded as major Asian drivers, along with other countries and actors in the region. The paper shows that Asia's official sector flows have been important to sustain the dynamism in the world economy, but also suggests developing Asia may be on the verge of becoming important sources of both FDI and portfolio flows to the rest of the world, including developing countries. The paper also identifies research questions related to each type of flows and their implications for countries' financial and macroeconomic management, and for global financial governance as well