Major Latin American Countries Research Articles

U.S. monetary policy shocks and bank lending in Latin America: evidence of an international bank lending channel

ABSTRACT We examine the impact of U.S. monetary policy shocks on bank lending in five major Latin American countries where large U.S. banks have limited presence. Our analysis covers annual balance sheet data from 2000 to 2021 for all banks in these nations, utilizing a recently developed measure of U.S. monetary policy shocks by Bu et al. Our findings reveal the existence of an international bank lending channel, with a one-percentage-point increase in the Fed funds rate resulting in an average 80.6 basis-point reduction in domestic bank loan growth in these countries. Liquidity and solvency emerge as crucial factors driving variations in lending behaviour among Latin American banks, with banks exhibiting stronger liquidity and solvency profiles experiencing higher loan supply growth rates.

Prospects for Humanitarian Diplomacy of the BRICS Countries in Latin America after the Expansion of the Group

: In August, 2023, six more states joined the BRICS format, many of which, like the five previously cooperating countries, are involved in humanitarian diplomacy. The article aims to identify new trends in the BRICS countries’ humanitarian diplomacy with Latin American countries. AidData databases, press releases, websites of humanitarian agencies and foreign ministries are used to identify trends in the bilateral humanitarian activities of the BRICS countries. In the process of comparing data, the existence of bilateral (in some cases multilateral) projects with Latin American states has been systematized. The bilateral relations of BRICS countries with states excluded from humanitarian ties were also analysed in order to identify possible contradictions. As a result, it is shown that among the BRICS states, all states except South Africa are proactive in Latin America, implementing humanitarian projects with the majority of states in the region. South Africa continues to receive aid from major Latin American countries, but does not engage with the region as a donor. Among the new BRICS participants, three groups of countries are distinguished based on activity of their humanitarian diplomacy in the region: those actively cooperating with Latin American countries, those cooperating with individual states, and states with insufficient resources or insufficient interest in investing in the region. The BRICS countries that are actively involved in humanitarian ties with the region have room to develop multilateral cooperation in the humanitarian sphere.

Cancer mortality predictions for 2023 in Latin America with focus on stomach cancer.

We estimated cancer mortality statistics for the current year in seven major Latin American countries. We retrieved official death certification data and population figures from the WHO and the United Nations databases for the 1970-2020 calendar period. We considered mortality from all neoplasms combined and for 10 major cancer sites. We estimated the number of deaths and age-standardized mortality rates for the year 2023. Age-standardized mortality rates for all cancers combined are predicted to decline in all countries, in both sexes, apart from Venezuelan women. The lowest predicted total cancer mortality rates are in Mexico, 69.8/100 000 men and 62.5/100 000 women. The highest rates are in Cuba with 133.4/100 000 men and 90.2/100 000 women. Stomach cancer is predicted to decline steadily in all countries considered, but remains the first-ranking site for men in Chile (14.3/100 000) and Colombia (11/100 000). Colorectal cancer rates also tended to decline but remain comparatively high in Argentina (14/100 000 men). Breast cancer rates were high in Argentinian women (16.5/100 000) though they tended to decline in all countries. Lung cancer mortality rates are also predicted to decline, however, rates remain exceedingly high in Cuba (30.5/100 000 men and 17.2/100 000 women) as opposed to Mexico (5.6/100 000 men and 3.2/10 000 women). Declines are also projected for cancer of the uterus, but rates remain high, particularly in Argentina and Cuba (10/100 000 women), and Venezuela (13/100 000 women) due to inadequate screening and cervical cancer control. Certified cancer mortality remains generally lower in Latin America (apart from Cuba), as compared to North America and Europe; this may be partly due to death certification validity.

Financial deepening and income inequality: is there a financial Kuznetz curve in Latin America?

We investigate whether financial deepening improves income distribution and whether there exists a financial Kuznetz curve in Latin America. A fixed effect estimation is based on a newly compiled panel for 16 major Latin American countries, including recent data from 1990 onward but excluding the pandemic. The dynamic panel estimates, based on Driscoll-Kraay robust standard errors and dynamic GMM instrumental variable methodology, reveal that financial deepening worsens income distribution by increasing the Gini coefficient. At the same token, there exists a financial Kuznetz curve for the region implying initial worsening and then improvements in the income gap as the financial sector develops. Additionally, educational attainment, economic growth and level of output contribute to a reduction in inequality. In contrast, we find that FDI, exports and poverty rate exacerbate the income gap.

중남미 주요 4국 현지 신문의 한류 기사 동향과 의미

The purpose of this paper is to find out the substance and characteristic meaning of the ‘Hallyu’ in Latin America through analysis of local newspaper articles in major Latin American countries. The passionate local response to the ‘Hallyu’ is a topic frequently covered by the Korean media through foreign media. However, it was found that the ‘Hallyu’ in Latin America is somewhat over-packaged than reported by the Korean media. The ‘Hallyu’ in Latin American is being enjoyed by a small number of fandoms at the center of 'K-POP' and some categories of ‘Hallyu’. But it could not spread to consumer goods such as beauty, fashion, and tourism. However, through the COVID-19 pandemic, the ‘Hallyu’ can grow significantly due to the combination of Latin America's digital transformation business and the change of perception of “COREA.” Therefore, providing sophisticated local information and balanced analysis on the ‘Hallyu’ could be of practical help to Latin American relations policies.

Commercial maps of the main Latin American countries in the international olive oil market

Aim of study: World trade in olive oil is undergoing structural changes, with the emergence of new relevant actors, notably South American countries. The objective of this study was to analyze the performance of emerging Latin American countries in the world olive oil market during the period 2010–2019. Area of study: Major Latin American countries within an international context. Material and methods: The study was conducted through an analysis of trade networks, the application of the export growth decomposition method, the index of import dependence, and competitiveness matrices developed from the statistical evolution of import share and market share indicators. Main results: European countries continue to dominate international trade in olive oil, however, Chile and Argentina have managed to widen their role. Chile was the country with the highest growth rate in olive oil exports in terms of value and volume in the period analyzed, whereas Argentina was below the world average. Prices in general have been stagnant, although price variability between countries can be distinguished. This may be due to the re-export policy of some countries, the qualities, the format, and some intrinsic characteristics of the markets. Research highlights: Chile and Argentina figure prominently for their commercial capacity, with the former focusing mainly on the USA and Brazilian markets, and the latter on the Spanish.

Cancer mortality predictions for 2021 in Latin America.

We estimated cancer mortality statistics for the current year in seven major Latin American countries, with a focus on colorectal cancer. We retrieved official death certification data and population figures from the World Health Organization and the Pan American Health Organization databases. We analysed mortality from all neoplasms combined and for selected cancer sites. We estimated numbers of deaths and age-standardized mortality rates for the year 2021 using a logarithmic Poisson count data joinpoint model. Total cancer mortality is predicted to decline in all countries considered for both sexes, with the exception of Argentinian women. The lowest total mortality rates were predicted in Mexico (65.4/100 000 men and 62.3 in women), the highest ones were in Cuba (133.3/100 000 men and 91.0 in women). Stomach cancer rates have been decreasing since 1970 in all countries; colorectal cancer started to decline over recent calendar periods. Rates for this cancer were unfavourable in the youngest age group. Lung cancer trends declined in males and remained comparatively low in all countries except Cuba. In Cuba, lung cancer rates in women overtook those for breast. Mortality from cancers of the breast, (cervix) uterus, ovary, prostate and bladder, as well as leukemia mostly showed favourable trends. A marked variability in rates across Latin American countries persists, and rates were relatively high for stomach, uterus, prostate and lung cancers, as compared to Europe and North America, suggesting the need to improve preventive strategies. Colorectal cancer mortality was relatively low in Latin America, except in Argentina, and short-term predictions remain moderately favourable.

Comprehending the outward FDI from Latin America and OCED: A comparative perspective

This study examines the determinants of outward foreign direct investment (FDI) from Latin American countries and compares it with their OECD counterparts. Our analysis is based on a sample of 45 countries, 13 from Latin America and 32 from the OECD, over the period 2001–2012. We find that the outward FDI from Latin America is more likely to be located in geographically proximate countries and in countries with similar culture and language than that from their OECD counterparts. We also show that Latin American outward FDI is less likely to be resource seeking. This presumably reflects the rich natural resource endowments and agricultural potential in major Latin American countries. Further, outward FDI from Latin America is more likely to be concentrated in countries with a similar corruption environment than that from their OECD counterparts. This might indicate a broadly similar nature of corruption across Latin America due to shared cultural, political and economic legacies.

The “day-of-the-week” effects in the exchange rate of Latin American currencies

This paper examines the “day-of-the-week” anomaly in the foreign exchange market of six major Latin American countries’ currencies: (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), all with respect to the United States’ dollar. The returns of daily exchange rates are stationary, so we use linear regressions combined with GARCH, TARCH and EGARCH models to explore the presence of the “day-of-the-week” anomaly. The results confirm the presence of “abnormal” effects in some of the currencies and in some days of the week, particularly on Fridays and Mondays. Moreover, volatility in exchange rates shows clustering behavior, as well as leverage effects, which are carefully modelled in our analysis. This paper contributes to the literature by studying the “day-of-the-week” effects in currency exchange rate markets, a clear innovation with respect to the typical stock market analysis. The results reported are useful for foreign exchange market traders, currency exposure management decision makers, monetary authorities, and financial policy designers in the countries included in the study. Indeed, the results suggest the presence of a typical behavior of the exchange rate of all the currencies included in the sample.

Análisis de la producción científica del Ecuador e impacto de la colaboración internacional en el periodo 2006-2015

La producción científica del Ecuador en relación con otros países latinoamericanos ha sido históricamente baja, en gran parte debido a la falta de cultura científica y políticas adecuadas que promuevan la investigación, además del descuido en priorizar la investigación en las universidades. Sin embargo, en los últimos 10 años, el gobierno ha implementado diversas políticas para ayudar a remediar esta situación. Presentamos un análisis bibliométrico de la producción de la investigación ecuatoriana durante el período 2006-2015. Los resultados muestran que la producción científica de Ecuador ha aumentado 5.16 veces en los últimos años, lo que supera el crecimiento latinoamericano. Más del 80% de las publicaciones ecuatorianas incluyen colaboración internacional, principalmente con EE.UU., España, el Reino Unido, Alemania, Francia, Brasil y Colombia. Se discuten las implicaciones de política pública.

A FMOLS Analysis of FDI Flows to Latin America

This paper estimates a panel FDI investment function that seeks to identify some of the major economic and institutional determinants of net FDI flows to nine major Latin American countries during the 1980-2014 period. First, it utilizes Dunning’s OLI model to identify some of the major economic and institutional determinants of FDI. Second, the paper provides an overview of FDI flows to Latin America during the 1990-2017 period, with particular emphasis on their contribution to the financing of gross fixed capital formation. Third, an economic rationale is provided for the included variables and their expected signs. Fourth, the paper reports estimates for a Fully Modified Ordinary least Squares (FMOLS) panel regression designed to explain the variation in FDI flows to Latin America during the 1980-2014 period. The estimates suggest that real GDP (a proxy for market size), credit provided by the private banking sector, government expenditures on education, and the level of economic freedom as measured by the Fraser Institute have a positive and significant effect. On the other hand, public investment spending, the volatility of real GDP and the real exchange rate have a negative and significant effect on FDI flows. The panel unit root and (Pedroni) panel cointegration tests suggest that there is a stable, long-term relationship among the included variables; i.e., the selected variables in the reported regressions are cointegrated over the relevant time period.

Asymmetric behaviour of current account sustainability in Latin America

AbstractThis paper studies current account sustainability in four major Latin American countries from 1996 to 2016. We use an empirical model that allows for the presence of several regimes. We find that there is a long‐run relationship between the income and expenditure of the current account for Chile, Mexico, Colombia, and Brazil. However, the results imply that while long‐run stable surpluses are expected in the first two countries, long‐run deficits are expected for the other two. This result provides valuable insights for macroeconomic authorities in developing economies for quantifying their external balance vulnerabilities and designing policies to effectively counteract the negative effects of external shocks.

FDI Flows to Latin America: A Pooled and Cointegration Analysis, 1980-2014

This paper estimates a pooled (fixed-effects) FDI investment function that seeks to identify some of the major economic and institutional determinants of net FDI flows to nine major Latin American countries during the 1980-2014 period. First, it develops a conceptual framework of analysis that seeks to identify some of the major economic and institutional determinants of FDI. Second, the paper gives an overview of FDI flows to Latin America during the 1990-2015 period, with particular emphasis on their contribution to the financing of gross capital formation. Third, an empirical model for FDI flows to Latin America is outlined and an economic rationale is provided for the included variables and their expected signs. Fourth, the estimates from a panel regression designed to explain the variation in FDI flows to Latin America during the 1980-2014 period suggests that market size (proxied by real GDP), credit provided by the private banking sector, government expenditures on education, and the level of economic freedom as measured by the Fraser Institute have a positive and significant effect. On the other hand, public investment spending, the volatility of real GDP and the real exchange rate have a negative and significant effect on FDI flows. The panel unit root tests on the residuals of the relevant panel regressions also suggest that there is a stable, long-term relationship among the included variables; i.e., the selected variables in the reported regressions are cointegrated over the relevant time period. Finally, the paper summarizes the major findings and offers some policy prescriptions for attracting FDI flows to the region and enhancing their positive direct and indirect effects.

An Appraisal of Floating Exchange Rate Regimes in Latin America

The exchange rate regime is a crucial variable in international economic relations. This presentation attempts to evaluate the performance of floating exchange rate regimes in the major Latin American countries.

The impact of exports to China on Latin American growth

This article analyzes the relationship between GDP growth in seven major Latin American countries and China’s demand for their exports. GLS panel estimation using annual data for the period 1994–2013 shows that the relationship was both statistically and economically significant. Control variables found to be significant in positively affecting GDP growth include the investment-to-output ratio, the exchange rate, and the terms of trade, and, in negatively affecting it, population growth and the unemployment rate. Consistent with recent literature, foreign direct investment was found not to be significant. A sharp drop in exports to China for many of the countries in the sample in 2015 raises questions about the region’s vulnerability to China’s growth slowdown.

Complementariedad de las inversiones a largo plazo y de capital de trabajo ante oportunidades de negocios y consideraciones de liquidez en países latinoamericanos

The objective of the study is the analysis of the relation between long term investment and investment in working capital, using the generalized least squares method for panel data with error correction for heteroscedasticity, and panel specific autocorrelation. From the above, it is found that investment in long-term assets in publicly traded companies from 7 major Latin American countries is preceded by increases in working capital, which strengthens the hypothesis that this occurs in response to improved business opportunities. This relationship is statistically significant in general and in companies that have high or medium, but not low leverage.

Volatility Dynamics in the Term Structure of Latin American Sovereign International Bonds

We examine the nature of volatility dynamics in the term structure of sovereign bonds issued in international markets by major Latin American countries. Focusing only on the U.S. dollar–denominated sovereign international bonds, this study shows the heterogeneous nature of volatility effects that affect the term structure of individual countries in Latin America. Considering the significance of the Argentine credit event in the region, we also account for any change in dynamics following the Argentine default in 2001 by subsampling the pre- and postdefault windows. We also find some evidence of liquidity-driven volatility interaction in the term structure.

Latin American Economic Growth

Seven major Latin American countries had moderately high growth rates during the period 2001–2012.We used indicators of capital market modernization and corruption to explain the widely varying GDP growth figures for each time frame and also assessed whether export growth was highly linked to GDP growth. The countries did not fall into clusters with each coinciding closely with the others in the cluster. Instead each country appeared to be sui generis, finding its own path in response to its own circumstances.

Los sistemas de impuesto a la renta de América Latina y los convenios de doble imposición vigentes

Los sistemas tributarios en América Latina han jugado un rol muy importante como los principales, y en algunos casos los únicos, medios de obtención de ingresos públicos para financiar los ingentes gastos públicos necesarios para el quehacer de los estados a través de los tiempos. A continuación se presenta una pequeña reseña de los principales aspectos delos sistemas tributarios en la región, con énfasis en el impacto de los impuestos a la renta vigentes en los principales países de América Latina. Asimismo, se incluye una breve explicación de la red de convenios para evitar la doble imposición, vigentes en cada uno de dichos países.

Worldwide trends in gastric cancer mortality (1980–2011), with predictions to 2015, and incidence by subtype

Gastric cancer incidence and mortality decreased substantially over the last decades in most countries worldwide, with differences in the trends and distribution of the main topographies across regions. To monitor recent mortality trends (1980–2011) and to compute short-term predictions (2015) of gastric cancer mortality in selected countries worldwide, we analysed mortality data provided by the World Health Organization. We also analysed incidence of cardia and non-cardia cancers using data from Cancer Incidence in Five Continents (2003–2007). The joinpoint regression over the most recent calendar periods gave estimated annual percent changes (EAPC) around −3% for the European Union (EU) and major European countries, as well as in Japan and Korea, and around −2% in North America and major Latin American countries. In the United States of America (USA), EU and other major countries worldwide, the EAPC, however, were lower than in previous years. The predictions for 2015 show that a levelling off of rates is expected in the USA and a few other countries. The relative contribution of cardia and non-cardia gastric cancers to the overall number of cases varies widely, with a generally higher proportion of cardia cancers in countries with lower gastric cancer incidence and mortality rates (e.g. the USA, Canada and Denmark). Despite the favourable mortality trends worldwide, in some countries the declines are becoming less marked. There still is the need to control Helicobacter pylori infection and other risk factors, as well as to improve diagnosis and management, to further reduce the burden of gastric cancer.