Variegated financialization and pension fund asset demand: the case of Colombia and Perú

2020 ◽  
Author(s):  
Bruno Bonizzi ◽  
Jennifer Churchill ◽  
Diego Guevara
Keyword(s):  
Emerging Economies ◽  
Pension Fund ◽  
Financial Integration ◽  
Recent Literature ◽  
Pension Policy ◽  
Policy Reforms ◽  
Comparative Political Economy ◽  
Growth Regime ◽  
Domestic Capital ◽  
Asset Demand

Abstract This article seeks to explain concretely how one ‘variegation’ of financialization in the emerging economy setting is being shaped by the growth of domestic pension funds. Taking Colombia and Perú as case studies, we explore the evolution of pension fund demand subsequent to substantial pension policy reforms in the 1990s. Drawing on comparative political economy and the recent literature on subordinate financialization in emerging economies, we present a three-tiered conjecture regarding what is shaping pension fund demand: (a) the particular institutional context of ‘hierarchical market economies’ and neoliberal market reforms, (b) the ‘extraverted’ growth regime and (c) subordinate financial integration. The resulting demand calls forth financial innovation and movement towards market-based financial mechanisms as seen with financialization elsewhere, yet in this instance occurring largely outside of domestic capital markets.

Deepening Integration

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Emerging Economies ◽  
Financial Integration ◽  
Foreign Currency ◽  
Financial System ◽  
The United States ◽  
Bank Loans ◽  
Capital Inflows ◽  
Resident Participation ◽  
International Financial System ◽  
Private And Public

After recurrent crises with severe consequences in the 1990s and early 2000s EDEs have become even more closely integrated into what is now widely recognized as an inherently unstable international financial system. This chapter discusses the factors accelerating global financial integration of EDEs, including monetary policies in major advanced economies, notably the United States. It examines capital inflows and outflows, external balance sheets, the size and composition of gross external assets and liabilities, distinguishing between equity and debt, private and public sectors, local currency and foreign currency debt, bond issues and bank loans, and cross-border and local lending by international banks. It provides data and information on the currency composition of external debt, and non-resident participation in domestic financial markets of emerging economies. These are used to identify the changes in the depth and pattern of integration of emerging economies into the international financial system since the early 1990s.

Financial Integration, Savings Gluts, and Asset Price Booms

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Felix Zhiyu Feng ◽  
Will Jianyu Lu ◽  
Caroline H. Zhu
Keyword(s):  
Financial Integration ◽  
Asset Price ◽  
Substitution Effect ◽  
Wealth Effect ◽  
Precautionary Savings ◽  
Domestic Capital ◽  
Borrowing Constraint ◽  
Savings Rate ◽  
Financing Costs ◽  
Capital Outflows

AbstractCapital outflows after financial integration can lead to simultaneous increases in the national savings rate and asset prices of an economy with substantial financing costs. Under autarky, firms invest in risky capital while facing a borrowing constraint that creates a need for precautionary savings. Financial integration provides firms with access to foreign risk-free assets and results in two effects: a substitution effect, whereby firms divert some investments to foreign assets and cause capital outflows; and a wealth effect, whereby they grow richer in equilibrium and thus demand more domestic capital. Savings gluts and asset price booms occur when the wealth effect dominates.

scholarly journals Diabetes and Its Link with Cancer: Providing the Fuel and Spark to Launch an Aggressive Growth Regime

2015 ◽  
Vol 2015 ◽  
pp. 1-11 ◽  
Author(s):  
Sanket Joshi ◽  
Menghan Liu ◽  
Nigel Turner
Keyword(s):  
Diabetic Complications ◽  
Recent Literature ◽  
Diabetic Patients ◽  
Nutrient Levels ◽  
Multiple Organs ◽  
Growth Regime ◽  
Initiation And Propagation ◽  
Antitumour Effects

Diabetes is a disease involving metabolic derangements in multiple organs. While the spectrum of diabetic complications has been known for years, recent evidence suggests that diabetes could also contribute to the initiation and propagation of certain cancers. The mechanism(s) underlying this relationship are not completely resolved but likely involve changes in hormone and nutrient levels, as well as activation of inflammatory and stress-related pathways. Interestingly, some of the drugs used clinically to treat diabetes also appear to have antitumour effects, further highlighting the interaction between these two conditions. In this contribution we review recent literature on this emerging relationship and explore the potential mechanisms that may promote cancer in diabetic patients.

Varieties of Power in Latin American Pension Finance: Pension Fund Capitalism, Developmentalism and Statism

2014 ◽  
Vol 49 (3) ◽  
pp. 483-510 ◽  
Author(s):  
Giselle Datz
Keyword(s):  
Latin America ◽  
Latin American ◽  
Emerging Economies ◽  
Pension Fund ◽  
Significant Degree ◽  
Public And Private ◽  
State Finance ◽  
Anglo American ◽  
Financial Power ◽  
Regional Analyses

When it comes to analyses of financial power in Latin America, there has been a tendency to assume it is mostly external, relatively homogeneous, and usually constraining of domestic policy autonomy. Increasingly, however, when speaking of financial power in the region, a focus exclusively on foreign capital misses a significant part of the empirical landscape, one inhabited by large domestic institutional investors: public and private pension funds. A focus on these funds reveals that a neat state–finance dichotomy is often unrepresentative of the type of blurred web of interests, influence and ownership that characterizes even those economies that have embraced a significant degree of liberalization. In fact, pension finance is far from uniform across countries. In order to capture this diversity in Latin America, a new typology is suggested that departs from the Anglo-American notion of ‘pension fund capitalism’ and further specifies pension finance as also revealing dynamics best described as ‘pension fund developmentalism and statism’. The typology is not only aimed at capturing more empirical nuance in Latin America; it can also serve as reference for cross-regional analyses of these often neglected, but increasingly powerful financial actors in emerging economies.

scholarly journals Financial Integration via Belt and Road Initiative: China–Turkey Cooperation

2019 ◽  
Vol 11 (1-2) ◽  
pp. 48-64
Author(s):  
Sıla Kulaksız
Keyword(s):  
Emerging Economies ◽  
Financial Integration ◽  
Economic Cooperation ◽  
Belt And Road Initiative ◽  
The World ◽  
Belt And Road ◽  
Different Characteristics ◽  
The Belt And Road ◽  
Common Future ◽  
Made In

The aim of this article is to review the progress made in the Belt and Road Initiative (BRI) in Turkey. Turkey and China both are the emerging economies of the world. They have similar ambitions for development. Turkey aims for “Vision 2023 goals” and China follows its “Destination 2049” goals. The BRI can bring them together to build a prosperous common future. However, both countries have different characteristics. This cooperation can be sustained in a more congruent way by exploring the existing opportunities and risks involved. In this context, some relevant questions are raised: how can cooperation between China and Turkey be strengthened? What are the opportunities and risks in this initiative? What are the expectations of these two countries? In this article, Turkey–China economic cooperation under the BRI will be analyzed. Some suggestions will be made for boosting cooperation between them.

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