Mechanism of economic growth in Asia What then makes the Asian economy so strong and resilient? To this end, I want to elaborate on two mechanisms or the dual engines which have driven the Asian economy. The first mechanism is Asia’s position as “the factory of the world,” a position achieved through continued expansion of exports driven by direct investment from abroad.
Global trade volumes increased dramatically with trade liberalization and direct investment growth. Firms in advanced economies proactively engaged in strategic global allocation of production sites in order to ensure the most efficient means of production.