THE FLOW OF CAPITAL TO LATIN AMERICA, 1973–2000

Abstract

The purpose of this study is to investigate the relationship between the flow of funds and growth variables for Latin America during the period of 1973–2000. To do so, we present a four equation econometric model that represents the traditional Monetarist and Keynesian perspectives. We also examine the hypothesis that the region can grow through gains from trade, through investigating trade as a source of growth from both computational general equilibrium (CGE) and Cournot-Nash equilibrium standpoints. Analyzing several scenarios, we determine that liberalization and reduced protectionism are superior strategies for Latin America.

Citation

Ramrattan, L., Gottesman, A.A. and Szenberg, M. (2005), "THE FLOW OF CAPITAL TO LATIN AMERICA, 1973–2000", Arbelaez, H. and Click, R.W. (Ed.) Latin American Financial Markets: Developments in Financial Innovations (International Finance Review, Vol. 5), Emerald Group Publishing Limited, Leeds, pp. 15-33. https://doi.org/10.1016/S1569-3767(05)05002-8