The Changing Patterns of Financial Integration in Latin America
This paper describes how Latin America and the Caribbean has been integrating financially with countries in the North and South since the 2000s. The paper shows that the region is increasingly more connected with the rest of the world, even relativ...
| Main Authors: | , , |
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| Language: | English en_US |
| Published: |
World Bank Group, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/02/23962800/changing-patterns-financial-integration-latin-america http://hdl.handle.net/10986/21452 |
| Summary: | This paper describes how Latin America
and the Caribbean has been integrating financially with
countries in the North and South since the 2000s. The paper
shows that the region is increasingly more connected with
the rest of the world, even relative to gross domestic
product. The region's connections with South countries
have been growing faster than with North countries,
especially during the second half of the 2000s.
Nevertheless, North countries continue to be the
region's principal source and receiver of flows. The
changes reflect significant increases in portfolio
investments, syndicated loans, and mergers and acquisitions.
Growth of greenfield investments has been more subdued after
the initial high level. Greenfield investments in the region
have been in sectors in which the source country has a
comparative advantage, not where the receiver country has an
advantage. Mergers and acquisitions have been in sectors in
which the receiver country has a comparative advantage. |
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