Emerging capital markets and globalization : the Latin American experience / Augusto de la Torre and Sergio L. Schmukler.

Includes bibliographical references (pages 185-201) and index.

The author analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of capital markets and related reforms over time and across regions, focusing on the experience of Latin America. Second, it analyzes the factors related to the development of capital markets. And third, in light of this analysis, it discusses the prospects for capital market development in emerging economies and the implications for the reform agenda. - Back cover.

Whither Capital Market Development? -- 1. Introduction -- 2. Why Does Financial Development Matter? -- 3. Evolution and Globalization of Capital Markets -- 3.1. Main Developments in International Capital Markets -- 3.2. Developing Countries and the Globalization Process -- 4. Main Developments in Domestic Capital Markets -- 5. Factors behind the Development and Internationalization of Capital Markets -- 6. Policy Implications -- 7. Final Remarks -- References -- Developments in Capital Markets -- 2. The Global Context -- 3. Developing Countries in the Global Context -- 3.1. How Global Trends Affected Developing Countries -- 3.2. The Policy Response: Attract, Emulate, and Manage -- 3.2.1. Attracting International Capital Flows -- 3.2.2. Emulating the Performance of Capital Markets in Developed Countries -- 3.2.3. Managing Volatile Capital Flows -- 3.3. The Reforms -- 4. Developments in Domestic Capital Markets -- 4.1. Comparative Trends in Domestic Capital Markets.

4.2. Main Features of Domestic Capital Markets Development -- 4.3. Country Experiences: Chile and Mexico -- 4.3.1. Chile -- 4.3.2. Mexico -- 5. Participation in International Capital Markets -- 6. Final Remarks -- Appendix 1: When Mark to Market Becomes Mark to Model -- References -- Factors Behind the Development and Internationalization of Capital Markets -- 2. Factors behind Capital Market Development -- 2.1. The Role of Economic and Institutional Fundamentals -- 2.2. The Impact of Reforms -- 3. Stock Market Internationalization -- 3.1. Factors behind Internationalization 90 3.1.1. The Role of Economic and Institutional Fundamentals -- 3.1.2. The Impact of Reforms -- 3.2. The Impact of Internationalization on Local Stock Markets -- 4. Domestic Capital Market Development in Latin America -- 5. Final Remarks -- References -- Whither the Reform Agenda? -- 2. What Went Wrong and What to Do Next? -- 2.1. Be Patient and Redouble the Effort -- 2.2. Get the Sequence Right -- 2.3. Revisit Basic Issues and Reshape Expectations -- 3. Back to Basics -- 3.1. Financial Globalization -- 3.2. Liquidity -- 3.3. Risk Diversification -- 4. Final Remarks -- Appendix: Regional Capital Markets Integration: A Viable Alternative? -- References.