Differing Effects of the Global Financial Crisis: Why Mexico Has Been Harder Hit than Other Large Latin American Countries

2011 ◽  
Vol 30 (4) ◽  
pp. 419-435 ◽  
Author(s):  
GREGORIO VIDAL ◽  
WESLEY C. MARSHALL ◽  
EUGENIA CORREA
Keyword(s):  
Financial Crisis ◽  
Latin American ◽  
Global Financial Crisis ◽  
The Global Financial Crisis ◽  
Latin American Countries

scholarly journals Has the First Global Financial Crisis Changed the Entrepreneurial Values in Digitalized Marketing-based Societies? The Case of GEM Latin American Countries

2017 ◽  
Author(s):  
José Manuel Saiz Álvarez ◽  
Alicia Coduras Martínez ◽  
Carlos Cuervo Arango
Keyword(s):  
Financial Crisis ◽  
Information And Communication Technologies ◽  
Latin American ◽  
Global Financial Crisis ◽  
Digital Marketing ◽  
Entrepreneurial Activity ◽  
Business Creation ◽  
Information And Communication ◽  
Using Data ◽  
Latin American Countries

As the world economy is globalized, crises are rapidly spread due to the massive use of ICTs (Information and Communication Technologies), also affecting the entrepreneurial values involved in business creation processes. In this sense, digital marketing has a key role to play, as it can serve as a tool based on technology applied to foster nascent entrepreneurship. Using data for GEM Latin American countries, and applying clustering analysis based on the K-means method, the objective of this work is to test if the actual First Global Financial Crisis (FGFC) has altered the entrepreneurial values in Latin American firms. The main result of this work is that the traits of entrepreneurial activity in GEM Latin American countries have progressively shifted from quantity to quality, so digital marketing is having an increasing importance.

China's Belt and Road Initiative in Latin America: What has Changed?

2021 ◽  
pp. 186810262110478
Author(s):  
Rhys Jenkins
Keyword(s):  
Latin America ◽  
Latin American ◽  
Global Financial Crisis ◽  
Belt And Road Initiative ◽  
Economic Relations ◽  
Policy Statements ◽  
Belt And Road ◽  
The Global Financial Crisis ◽  
Latin American Countries ◽  
The Belt And Road

When China invited the Latin American countries to participate in the Belt and Road Initiative, it fuelled expectations of a much closer and more productive relationship with the region. In practice, however, there is little evidence that this was happening even before the coronavirus disease 2019 pandemic. The article shows that neither the policy statements by China nor the trends in economic relations indicate a substantive change in Sino–Latin American relations and that the Belt and Road Initiative represents a repackaging of existing relations and the continuation of trends that have been underway since the global financial crisis.

scholarly journals CHANGES IN THE CHINESE DEVELOPMENT STRATEGY AFTER THE GLOBAL CRISIS AND ITS IMPACTS IN LATIN AMERICA

2018 ◽  
Vol 22 (1) ◽  
Author(s):  
Celio Hiratuka
Keyword(s):  
Latin America ◽  
Development Strategy ◽  
Latin American ◽  
Global Financial Crisis ◽  
Trade Flows ◽  
First Century ◽  
Economic Relations ◽  
New Challenges ◽  
The Global Financial Crisis ◽  
Latin American Countries

ABSTRACT This paper aims to analyze the recent changes in economic relations between Latin American countries and China in the context of the transformations occurred in the latter’s development strategy after the global financial crisis. The text argues that, in relation to the first decade of the twenty-first century, connections linked to FDI, financing flows, and infrastructure projects have been growing in importance and present new challenges to Latin America, which surpass the ones based only on trade flows.

scholarly journals Return and Volatility Transmission between World-Leading and Latin American Stock Markets: Portfolio Implications

2020 ◽  
Vol 13 (7) ◽  
pp. 148 ◽  
Author(s):  
Imran Yousaf ◽  
Shoaib Ali ◽  
Wing-Keung Wong
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Latin American ◽  
Stock Markets ◽  
Global Financial Crisis ◽  
Volatility Spillover ◽  
Chinese Stock Market ◽  
Volatility Transmission ◽  
The Us ◽  
The Global Financial Crisis

This study uses the BEKK-GARCH model to examine the return-and-volatility spillover between the world-leading markets (USA and China) and four emerging Latin American stock markets over the global financial crisis of 2008 and the crash of the Chinese stock market of 2015. Regarding return spillover, our findings reveal a unidirectional return transmission from Mexico to the US stock market during the global financial crisis. During the crash of the Chinese stock market, the return spillover is found to be unidirectional from the US to the Brazil, Chile, Mexico, and Peru stock markets. Moreover, the results indicate a unidirectional return transmission from China to the Brazil, Chile, Mexico, and Peru stock markets during the global financial crisis and the crash of the Chinese stock market. Regarding volatility spillover, the results show the bidirectional volatility transmission between the US and the stock markets of Chile and Mexico during the global financial crisis. During the Chinese crash, the bidirectional volatility transmission is observed between the US and Mexican stock markets. Furthermore, the volatility spillover is unidirectional from China to the Brazil stock market during the global financial crisis. During the Chinese crash, the volatility spillover is bidirectional between the China and Brazil stock markets. Lastly, a portfolio analysis application has been conducted.

scholarly journals CORPORATE INVESTMENT IN THE GLOBAL FINANCIAL CRISIS

2021 ◽  
Vol 22 (3) ◽  
pp. 636-655
Author(s):  
Michele Jucá ◽  
Albert Fishlow
Keyword(s):  
Financial Crisis ◽  
Latin American ◽  
Global Financial Crisis ◽  
Bank Debt ◽  
Public And Private ◽  
Review Period ◽  
The Government ◽  
The Global Financial Crisis ◽  
Cash Reserves ◽  
The Impact

This paper exams the impact of high levels of bank debt, leverage, credit obtained from government banks and cash reserves in the long and short terms investments of firms in the main Latin American countries after this crisis. For this purpose, it is applied a difference-in-differences test in a sample of more than 500 public and private firms, using hand-collected data of firms’ governmental bank dependence. The review period considers five previous (2003–2007) and subsequent years (2008–2012) to the crisis. The major results are reduction of long-term investments for firms with greater banking dependence, as well as short-term investments for firms with a higher level of cash reserves. Besides, firms that are more reliant on government-owned banks reduce capital expenditures. Differently from other studies, this one examines the impact of the last global financial crisis on the firms´ investment, considering its dependence of bank debt of institutions that belongs to the government or not. Understanding the mechanisms available to emerging economies can shed light on new countercyclical policies of governments and changes in the legislations of the financial system.

scholarly journals International Financial US Linkages: Networks Theory and MS-VAR Analyses

2019 ◽  
Vol 14 (PNEA) ◽  
pp. 459-484
Author(s):  
Miriam Sosa ◽  
Edgar Ortiz
Keyword(s):  
Financial Crisis ◽  
Latin American ◽  
Stock Markets ◽  
Regime Switching ◽  
Structural Changes ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Portfolio Investment ◽  
The Global Financial Crisis ◽  
The Impact

This paper aims to examine the impact of the Global Financial Crisis on portfolio investment flows, as well as on stock market activity. Network Theory is used to analyze structural changes of foreign portfolio investment flows (FPI) to a sample of 13 developed countries and 6 emerging Latin American countries. Additionally, using daily data from 2003 to 2015, the dynamics of returns are analyzed to test whether the US market influenced these markets or vice versa; univariate (MS-AR) and multivariate (MS-VAR) regime-switching models are used. The evidence confirms the presence of two different regimes, low volatility and a high volatility for all markets. Findings suggest strengthening local productive and financial institutions in order to anchor FPI. The MS-(V)AR study is limited to stock markets from the Americas and Europe. Previous literature has not applied the innovative and complementary methodologies employed here to analyze financial crisis impacts on FPI flows. We conclude that US financial markets keep a close financial relationship with the most important European and American countries’ stock markets, both by receiving and delivering FPI, and in addition influencing the behavior of stock indexes.

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