The Changing Patterns of Financial Integration in Latin America / Didier, Tatiana

Format:

Book

Government document

Author/Creator:

Didier, Tatiana

Contributor:

Didier, Tatiana

Moretti, Matias

Schmukler, Sergio L.

Series:

Policy research working papers.

World Bank e-Library.

Language:

English

Subjects (All):

Finance and Financial Sector Development.

Macroeconomics and Economic Growth.

Private Sector Development.

Local Subjects:

Finance and Financial Sector Development.

Macroeconomics and Economic Growth.

Private Sector Development.

Physical Description:

1 online resource (48 pages)

Place of Publication:

Washington, D.C., The World Bank, 2015

System Details:

data file

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.