Latin American Capital Markets

208 RUBEN LEEConclusionsThis chapter has provided a summary of the costs and benefits of, and barriers to, regionalcapital market integration. It has evaluated the manner in which legislative andregulatory initiatives may or may not further regional capital market integration. It hasdescribed and assessed key types of cooperative initiatives in the provision of marketinfrastructure to promote regional capital market integration. And it has proposed astrategy to promote capital market integration in Latin America and the Caribbean.The promotion of regional capital market integration is critically importantfor regional development, and its importance is becoming progressively more widelyaccepted, not only by market participants but also at the highest political levels. Regionalcapital market integration requires two key elements: lower cross-border transactioncosts and the ability of market participants to deliver their services across borderswithout restrictions. Although it is possible to further these goals at a domesticlevel, the potential gains of doing so at a regional level are significantly largerBibliographyBaker H. Kent, and Martha Johnson. 1990. A Survey of Management Views on ExchangeListing. Quarterly Journal of Business Economics 29(4):3-20.Beck,Thorsten, Ross Levine, and Norman Loayza. 2000. Finance and the Sources ofGrowth. Journal of Financial Economics (58):26I-300.Bourse Regionale desValeurs Mobilieres (BRVM). 2000. Revue trimestrielle: I octobre1999-31 decembre 1999 (S}.Brown Q. C, David A. 1999. After MacKay, Re Aligning Financial Services Regulation:A Framework for Market Regulation in Canada. Securities Superconference,Toronto, Canada, February 24.Cochrane, James L, James E. Shapiro, and Jean E.Tobin. 1995. Foreign Equities and U.S.Investors: Breaking Down the Barriers Separating Supply and Demand. NYSEWorking Paper 95-04. New York Stock Exchange, December 8.Cohen, K. J., S. F. Maier, R. A. Schwartz, and D. K.Whitcomb. 1986. The Micmstructure ofSecurities Markets. Englewood Cliffs, N.J.: Prentice-Hall.Commission of the European Communities. 1977. Advantages and Disadvantages of anIntegrated Market Compared with a Fragmented Market. Studies, Competition—Approximation of Legislation Series (Schmidt Report) 30.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub