Foreign aid and FDI in the presence of good governance have positive impact on the economic growth

Just availability of funds does not necessitate the economic development; it’s the institutional infrastructure that matters a lot for development. Developing countries are not only facing the binding revenue constraints but also side by side they are victim to low level of governance quality. Asia is the fastest growing economic region since 1965 and the Asian economy consists of nearly 4.2 billion people (60% of the world population) but it is facing the problems regarding the availability of funds and issues in the governance quality. So there is a need to pin point those issues that create the development difference with in different regions of Asia.