Benefits of Global and Regional Financial Integration in Latin America

Author/Editor:

Luc Eyraud ; Diva Singh ; Bennett W Sutton

Publication Date:

January 18, 2017

Electronic Access:

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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.

Series:

Working Paper No.17/1

Subject:

English

Publication Date:

January 18, 2017

ISBN/ISSN:

9781475568684/1018-5941

Stock No:

WPIEA2017001

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

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