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This paper analyzes two views on the issue of FDI and stock market development. The first view is that FDI is negatively correlated with the development of stock markets…
This paper analyzes two views on the issue of FDI and stock market development. The first view is that FDI is negatively correlated with the development of stock markets. The second view is that FDI is positively related to stock market development. After addressing the issues that might lead to these conclusions, the hypothesis is tested that the level of stock market development in a country is positively correlated to FDI. Data is collected from four Latin American countries and an empirical model is proposed to explain the observed relationship. Additional explanatory variables were included, and a model is developed.
Cross-border investment has been a large part of merger and acquisition activity in the Latin American banking sector. Spain and the United States have been the largest…
Cross-border investment has been a large part of merger and acquisition activity in the Latin American banking sector. Spain and the United States have been the largest investors, participating in almost 70% of the total transaction value. After an explanation of the importance of foreign direct investment and implications for cross-border investment, this paper focuses on the largest investor in the region's banking sector and attempts to find an explanation for the increasing participation of Spanish banks. The paper alludes to a potential new reality: Latin America could be the geographical location where major contenders in banking will be engaged in battles for global dominance.
This book is an attempt to reflect on what we have learned from financial policies and financial crises in Latin America. The 21 chapters in this volume capture the developments in various ways. They cover theoretical contributions, regional empirical studies, and specific inquiries on Argentina, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Peru and Venezuela. The breadth of methodologies implemented suggests that researchers are looking at Latin American financial markets through a variety of lenses. The chapters are divided into 7 parts, including, in Part I, an initial overview. Part II examines the foreign exchange markets in Latin America and their interactions with other markets. Part III discusses dollarization issues in the region. Part IV then takes up the issue of banking in Latin America. Equity and bond markets are considered in Parts V and VI, respectively. Lastly, Part VII considers pension systems in Latin America. Taken as a whole, the 21 chapters seize the excitement of studying Latin America and provide lessons that are applicable around the world.