Benefits of Global and Regional Financial Integration in Latin America
33 Pages Posted: 7 Mar 2017
Date Written: January 2017
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 1/4 -3/4 percentage point in these countries, on average.
Keywords: Economic integration, Latin America, Financial markets, Foreign banks, Regional integration, Economic growth, Latin America, Financial integration, Growth
JEL Classification: F21, F23, F36, G15
Suggested Citation: Suggested Citation