Hardback
Capital Movements and Corporate Dominance in Latin America
Reduced Growth and Increased Instability
9781800372139 Edward Elgar Publishing
This book addresses the problems of Latin America, through two of the most important features of the post-Bretton Woods economic order, large corporations and weak financial markets. In turn, it shows that their impact on economic growth and development is feeble and short-lived. This resulted in income concentration and an extremely unequal distribution of wealth in the region.
More Information
Critical Acclaim
Contributors
Contents
More Information
This book addresses the problems of Latin America, through two of the most important features of the post-Bretton Woods economic order, large corporations and weak financial markets. In turn, it shows that their impact on economic growth and development is feeble and short-lived. This resulted in income concentration and an extremely unequal distribution of wealth in the region.
As a result, large corporations and financial markets became central institutions in developing economies. In this context, Latin American countries globalized their economies, modifying their productive and financial structures and strengthening large corporation and non- financial structures.
This economic order was a failure, as it was unable to achieve development in Latin America; large capital corporations either re-primarized their productive activity or developed an organization based on assembly manufacture, and, as such, financial markets remained underdeveloped because large corporations did not operate through domestic financial markets.
In this book, the effects of these trends are analyzed in regional and country studies, while the impact of the 2008 Great Financial Crisis on Latin American economies are also considered.
Researchers and students, especially those interested in a Post-Keynesian or heterodox view of the region, will find these studies illuminating.
As a result, large corporations and financial markets became central institutions in developing economies. In this context, Latin American countries globalized their economies, modifying their productive and financial structures and strengthening large corporation and non- financial structures.
This economic order was a failure, as it was unable to achieve development in Latin America; large capital corporations either re-primarized their productive activity or developed an organization based on assembly manufacture, and, as such, financial markets remained underdeveloped because large corporations did not operate through domestic financial markets.
In this book, the effects of these trends are analyzed in regional and country studies, while the impact of the 2008 Great Financial Crisis on Latin American economies are also considered.
Researchers and students, especially those interested in a Post-Keynesian or heterodox view of the region, will find these studies illuminating.
Critical Acclaim
‘This volume provides a useful collection of chapters on the overseas financing of corporates in different Latin American countries that is responsible for both instability and stagnation in the real sectors of these economies. The book, with its rich research material, provides useful input for future research, by academics as well as policy makers.’
– Sunanda Sen, Review of Political Economy
‘Cross-border capital movements and the operations of corporations have major effects on the economic and social paths of developing and emerging economies. This wide-ranging collection of insightful essays brings us knowledge and understanding of the many important dimensions by which globalised financialisation has dominated Latin American economies.’
– Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UK
– Sunanda Sen, Review of Political Economy
‘Cross-border capital movements and the operations of corporations have major effects on the economic and social paths of developing and emerging economies. This wide-ranging collection of insightful essays brings us knowledge and understanding of the many important dimensions by which globalised financialisation has dominated Latin American economies.’
– Malcolm Sawyer, Emeritus Professor of Economics, University of Leeds, UK
Contributors
Contributors: C. Allami, B. Bonizzi, P. Bortz, J.A. Bustamante-Torres, N. Cerpa-Vielma, J. Churchill, A. Cibils, G. Cómbita-Mora, G. Dymski, X. Echenique-Romero, N. Favreau-Negront, A. Garay-Huamán, A. Kaltenbrunner, N. Levy-Orlik, Á.M. Moreno-Rivas, S. Ortiz-Velásquez, J.P. Painceira, E. Pérez-Caldentey, L.-P. Rochon, G.A. Salazar, A. Saludjian, M. Shabani, H. Szymborska, J. Toporowski, M. Varela-Enriquez
Contents
Contents:
Introduction: the issues at stake 1
Noemi Levy-Orlik, Jorge Alonso Bustamante-Torres and Louis-Philippe Rochon
PART I POST CRISIS NEW CAPITAL MOVEMENT TREND
1 Financial geography and the ‘social reality of finance’: aspatial or ‘real
space’ analyses of financial crises? 9
Gary Dymski and Nicole Cerpa Vielma
2 The transmission mechanism of financial crisis to developing countries:
why the ‘global financial crisis’ wasn’t global 24
Jan Toporowski
3 Foreign direct investment, inequality, and macroeconomic stability on
the eve of the COVID-19 crisis 38
Hanna Szymborska
4 Pension funds and domestic debt markets in emerging economies 55
Jennifer Churchill, Bruno Bonizzi and Annina Kaltenbrunner
5 The distribution of dividends of multinational banks operating in Latin
America 72
Mimoza Shabani
6 The unique development of non-financial corporations in Latin America 89
Noemi Levy-Orlik and Jorge Alonso Bustamante-Torres
PART II NON-FINANCIAL CORPORATIONS AND ECONOMIC GROWTH
7 Capital flows, the role of non-financial corporations and their
macroeconomic implications: an analysis of the case of Chile 107
Esteban Pérez-Caldentey and Nicole Favreau-Negront
8 Foreign direct investment in the Mexican steel industry 120
Samuel Ortiz-Velásquez
9 Excess international liquidity and corporate financing in Mexico:
reflections from USA monetary policy of quantitative easing 140
Ximena Echenique-Romero
10 Foreign direct investment in Latin America: effects on growth and
development, 1996‒2017 158
Marcelo Varela-Enríquez and Gustavo Adrián Salazar
PART III CAPITAL MOVEMENT AND ECONOMIC PATTERNS
11 Latin American international integration and global value chains: what
changed after the 2008 global financial crisis 175
Juan Pablo Painceira and Alexis Saludjian
12 From “downpour of investments” to debt crisis: the case of Argentina
2015‒2019 193
Cecilia Allami, Pablo Bortz and Alan Cibils
13 The hegemony of big corporations and the internationalization of
capital: a stagnation model with restricted democracy 204
Gonzalo Cómbita-Mora and Álvaro Martín Moreno-Rivas
14 Extractive capitalism: transnational miners and Andean peasants in Peru 222
Alejandro Garay-Huamán
Index
Introduction: the issues at stake 1
Noemi Levy-Orlik, Jorge Alonso Bustamante-Torres and Louis-Philippe Rochon
PART I POST CRISIS NEW CAPITAL MOVEMENT TREND
1 Financial geography and the ‘social reality of finance’: aspatial or ‘real
space’ analyses of financial crises? 9
Gary Dymski and Nicole Cerpa Vielma
2 The transmission mechanism of financial crisis to developing countries:
why the ‘global financial crisis’ wasn’t global 24
Jan Toporowski
3 Foreign direct investment, inequality, and macroeconomic stability on
the eve of the COVID-19 crisis 38
Hanna Szymborska
4 Pension funds and domestic debt markets in emerging economies 55
Jennifer Churchill, Bruno Bonizzi and Annina Kaltenbrunner
5 The distribution of dividends of multinational banks operating in Latin
America 72
Mimoza Shabani
6 The unique development of non-financial corporations in Latin America 89
Noemi Levy-Orlik and Jorge Alonso Bustamante-Torres
PART II NON-FINANCIAL CORPORATIONS AND ECONOMIC GROWTH
7 Capital flows, the role of non-financial corporations and their
macroeconomic implications: an analysis of the case of Chile 107
Esteban Pérez-Caldentey and Nicole Favreau-Negront
8 Foreign direct investment in the Mexican steel industry 120
Samuel Ortiz-Velásquez
9 Excess international liquidity and corporate financing in Mexico:
reflections from USA monetary policy of quantitative easing 140
Ximena Echenique-Romero
10 Foreign direct investment in Latin America: effects on growth and
development, 1996‒2017 158
Marcelo Varela-Enríquez and Gustavo Adrián Salazar
PART III CAPITAL MOVEMENT AND ECONOMIC PATTERNS
11 Latin American international integration and global value chains: what
changed after the 2008 global financial crisis 175
Juan Pablo Painceira and Alexis Saludjian
12 From “downpour of investments” to debt crisis: the case of Argentina
2015‒2019 193
Cecilia Allami, Pablo Bortz and Alan Cibils
13 The hegemony of big corporations and the internationalization of
capital: a stagnation model with restricted democracy 204
Gonzalo Cómbita-Mora and Álvaro Martín Moreno-Rivas
14 Extractive capitalism: transnational miners and Andean peasants in Peru 222
Alejandro Garay-Huamán
Index
