Financial liberalization and capital flows

When most people think of emerging market economies, they reflexively think of Asia, and with good reason. Not only is Asia home to over 60 percent of the world&s;s population, but it is also the source of a significant fraction of world growth. All emerging market economies accounted for 63 percent of global growth in 2010; emerging economies in Asia accounted for two-thirds of this growth. This trend is likely to continue well beyond 2010. Overall growth in Asia is expected to be 8 percent in 2011 and 2012, but higher than this in many countries, particularly the two dominant economies in the region: China and India.