Can Latin America Tap the Globalization Upside?

This paper discusses the theoretical arguments in favor of and against economic globalization and, with a view to ascertaining whether Latin America may be able to capture the globalization upside, examines the trends and salient features of Latin America's globalization as compared with that of Southeast Asia. The paper focuses on trade and financial integration as well as the aggregate demand structures (domestic demand-driven versus external demand-driven) that underpin the globalization process. It finds that Latin America is mitigating some bad side effects of financial globalization by moving toward a safer form of international financial integration and improving its macro-financial policy frameworks. Nonetheless, Latin America's progress in raising the quality of its international trade integration has been scant. The region's commodity-heavy trade structures and relatively poor quality of trade connectivity can hinder growth potential to the extent that they are less conducive to technology and learning spillovers. Moreover, Latin America's domestic demand-driven growth pattern (a reflection of relatively low domestic savings) may become an additional drag to growth by accentuating the risk of a low savings-low external competitiveness trap.

Bibliographic Details

Main Authors:	de la Torre, Augusto, Didier, Tatiana, Pinat, Magali
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-04
Subjects:	ADVANCED ECONOMIES, AGGREGATE DEMAND, ARBITRAGEURS, ASSET MANAGEMENT, ASSET MANAGERS, BALANCE OF PAYMENTS, BALANCE OF PAYMENTS CRISES, BALANCE SHEETS, BANKING SYSTEMS, BASKET OF GOODS, BONDS, CAPITAL ACCOUNT, CAPITAL CONTROLS, CAPITAL FLIGHT, CAPITAL FLOW, CAPITAL FLOWS, CAPITAL GAINS, CAPITAL INFLOWS, CAPITAL MARKET, CAPITAL OUTFLOWS, CENTRAL BANK, CENTRAL BANKS, COLLATERAL, COMMODITIES, COMMODITY, COMMODITY EXPORT, COMMODITY EXPORTS, COMMODITY PRICE, COMMODITY PRICE BOOM, COMMODITY PRICES, COMPETITIVE REAL EXCHANGE RATE, CONNECTIVITY, CONTRACT ENFORCEMENT, COUNTRY RISK, CREDIBILITY, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT SURPLUSES, DEBT, DEBTS, DEPOSIT, DEPOSIT INSURANCE, DEVALUATION, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DISCLOSURE STANDARDS, DISTRIBUTION OF INCOME, DIVIDEND, DIVIDEND PAYMENTS, DIVIDENDS, DOLLAR LIABILITIES, DOLLAR VALUES, DOMESTIC CURRENCY, DOMESTIC DEMAND, DOMESTIC FINANCIAL SECTOR, DOMESTIC FINANCIAL SYSTEM, DOMESTIC INVESTORS, DOMESTIC SAVINGS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC INTEGRATION, EMERGING ECONOMIES, EMERGING ECONOMY, EMERGING MARKET, EMERGING MARKET ASSETS, EMERGING MARKET ECONOMIES, EMERGING MARKET EXPOSURE, EMERGING MARKETS, EQUITIES, EQUITY PRICE, EXCHANGE RATE, EXCHANGE RATE SYSTEM, EXCHANGE RATES, EXPORTERS, EXTERNAL COMPETITIVENESS, EXTERNAL DEMAND, EXTERNAL FINANCE, EXTERNAL FINANCING, FINANCIAL CONTRACTS, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DEREGULATION, FINANCIAL DEVELOPMENT, FINANCIAL FLOWS, FINANCIAL INSTABILITY, FINANCIAL INTEGRATION, FINANCIAL INTERMEDIARIES, FINANCIAL LIBERALIZATION, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL POLICY, FINANCIAL SECTOR, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FINANCIAL VOLATILITY, FISCAL DECENTRALIZATION, FISCAL POLICY, FLEXIBLE EXCHANGE RATES, FOREIGN ASSETS, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKETS, FOREIGN INVESTORS, FOREIGN TRADE, FREE TRADE, FREE TRADE AGREEMENTS, FUTURE GROWTH, GLOBAL CAPITAL, GLOBAL ECONOMIC LANDSCAPE, GLOBAL ECONOMY, GLOBAL FINANCIAL SYSTEM, GLOBAL RISK, GLOBALIZATION, GOVERNMENT DEBT, GROSS DOMESTIC PRODUCT, GROWTH PERFORMANCE, GROWTH RATES, HEDGE FUNDS, HIGH-INCOME COUNTRIES, IMPORT, IMPORTS, INCOME, INCOME GROWTH, INFLATION TARGET, INFLATION TARGETING, INSTITUTIONAL INVESTORS, INSURANCE, INTEREST RATE, INTEREST RATES, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL ECONOMIC INTEGRATION, INTERNATIONAL FINANCE, INTERNATIONAL FINANCIAL ARCHITECTURE, INTERNATIONAL FINANCIAL INTEGRATION, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL INVESTORS, INTERNATIONAL MARKETS, INTERNATIONAL RESERVES, INTERNATIONAL TRADE, LEGAL FRAMEWORK, LIBERALIZATION, LIQUIDITY, LIQUIDITY FACILITY, LOCAL CURRENCIES, LOCAL CURRENCY, LOCAL INSTITUTIONS, LONG-TERM FINANCE, MACROECONOMIC POLICIES, MANUFACTURING INDUSTRIES, MARKET SHARE, MARKET STRUCTURE, MATURITY MISMATCHES, MIDDLE-INCOME COUNTRIES, MIDDLE-INCOME ECONOMIES, MONETARY POLICIES, MONETARY POLICY, MONOPOLY, MULTINATIONAL CORPORATIONS, MUTUAL FUNDS, NATURAL RESOURCE, NATURAL RESOURCES, NET CAPITAL, OPEN ECONOMIES, OUTPUT, PENSION, PENSION FUNDS, PERIODS OF STRESS, POLITICAL ECONOMY, POLITICAL POWER, PORTFOLIO, PORTFOLIO DIVERSIFICATION, PORTFOLIO FLOWS, POSITIVE SPILLOVERS, PRICE MOVEMENTS, PRICE VOLATILITY, PRIVATE INVESTMENTS, PURCHASING POWER, REAL EXCHANGE RATE, REGIONAL TRADE, REGULATORY STANDARDS, REGULATORY SYSTEM, RELATIVE PRICES, RISK MANAGEMENT, SAVINGS, SECURITIES, SECURITIES MARKETS, SOVEREIGN DEBT, STABLE FINANCIAL MARKETS, STOCK MARKET, TECHNOLOGY TRANSFERS, TRADE INTEGRATION, TRADE LIBERALIZATION, TRADE OPENNESS, TRADE PATTERNS, TRADE SHOCKS, TRADITIONAL INVESTMENT, VOLATILE CAPITAL, VOLATILITY, WORLD ECONOMY, WORLD INVESTMENT REPORT,
Online Access:	http://documents.worldbank.org/curated/en/2014/04/19360394/can-latin-america-tap-globalization-upside-can-latin-america-tap-globalization-upside http://hdl.handle.net/10986/17717
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