Finally, the transformation of developing Asia into a surplus region is not only a relatively recent phenomenon but also a puzzling phenomenon. By definition, the current account surplus is equal to net savings, or difference between savings and investment. Therefore, the emergence of large and persistent current account surpluses is equivalent to a widening gap between savings and investment. While a number of explanations have been put forth for a well-known stylized fact—the postcrisis investment drop in the
crisis countries—all of them suffer from lack of convincing theoretical and empirical support. Another well-known stylized fact that underlies the region’s postcrisis surpluses (the unusually high and rising saving rates of the PRC and some newly industrializing economies) also remains a puzzle that cannot be accounted for by the fundamental determinants of savings. In short, much more research needs to be done to improve our understanding of Asia’s postcrisis current account surpluses.