IMF Working Papers

Benefits of Global and Regional Financial Integration in Latin America

By Luc Eyraud, Diva Singh, Bennett W Sutton

January 18, 2017

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Luc Eyraud, Diva Singh, and Bennett W Sutton. Benefits of Global and Regional Financial Integration in Latin America, (USA: International Monetary Fund, 2017) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The timing is ripe to pursue greater regional financial integration in Latin America given the withdrawal of some global banks from the region and the weakening of growth prospects. Important initiatives are ongoing to foster financial integration. Failure to capitalize on this would represent a significant missed opportunity. This paper examines the scope for further global and regional financial integration in Latin America, based on economic fundamentals and comparisons to other emerging regions, and quantifies the potential macroeconomic gains that such integration could bring. The analysis suggests that closing the financial integration gap could boost GDP growth be ¼ - ¾ percentage point in these countries, on average.

Subject: Economic integration, Emerging and frontier financial markets, Financial crises, Financial integration, Financial markets, Globalization, Regional integration

Keywords: Asia and Pacific, BIS bank lending, Branch market, Closed economy, Composite index, Emerging and frontier financial markets, Europe, Financial activity, Financial integration, GDP ratio, Global, Growth, Investment profile subcomponent, Latin America, Market infrastructure, Market participant, Regional integration, WP

Publication Details

  • Pages:

    32

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2017/001

  • Stock No:

    WPIEA2017001

  • ISBN:

    9781475568684

  • ISSN:

    1018-5941

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