Corporate Governance And Capital Flows In A Global Economy

With global financial markets having become more integrated, the book pays particular attention to the role of corporate governance in emerging-market economies and international capital flows. Rich in facts and ideas, the book is for anyone interested in financial crises, international risk management and global competitiveness.

Which rules will shape globalization in the Twenty-first-century? This collection looks at the need for new rules and the divergence of national attitudes towards global economic governance. It covers the role of states in negotiating international trade, in regulating the banks and in promoting trilateralism. It investigates the role of business by assessing its increased power in writing the rules for self-regulation and in influencing the public sphere. Also, international organizations are analyzed as standard setters and regional institutions are examined as blueprints for global governance.

Since the summer of 2007, the world scenario has been dominated by the US sub-prime mortgage crisis and its repercussions on global financial markets and economic growth. As banks around the world wrote down their losses and governments intervened to rescue domestic financial institutions, financial distress severely hit the real economy leading to what has been widely defined as the worst recession since the 1930s. Under these conditions, along with the immediate concern for stemming the effects of the crisis, policy-makers around the world have been debating the long-term measures that have to be adopted in order to reduce the likelihood of future crises and to ensure stable economic growth. Although this debate has not yet produced significant transformations, it indicates a renewed concern about the institutional architecture that is meant to govern the global economic and financial system. This book tackles the issue of what the governance of the global economic and financial system looks like and what the prospects for its reform are. Specifically, the book will address the following three main themes: Governance: What is governance in the international economic system? What forms does it take? How did it come about? How can we study it?; Functions of governance: What are the functions of global economic governance? Who performs them? What are the rules and mechanisms that make global governance possible? Problems and prospects of governance: What are the problems in global economic governance? Is there a trade-off between legitimacy and efficiency? What are the prospects for reform of global economic governance in the aftermath of the global financial crisis? This book will: _ Provide a thorough analysis of the issues at stake in designing international rules and institutions able to govern the global economy; _ Illustrate and analyze virtually all the main institutions, rules, and arrangements that make up global economic governance, inscribing them within the function these institutions, rules, and arrangements are meant to perform; _ Discuss the problems that affect today’s global economic governance and assess alternative proposals to reform the international financial architecture.

The relationship between the institutions of corporate governance and capital flows is complex. The majority of the literature however concentrates on the influence corporate governance has on investments. The reverse causality was so far mostly neglected, despite great relevance for investors, managers and policy makers. Christoph Nedopil focuses in this study on the topic what influence international investments have on the development of the corporate governance environment and answers this question both conceptually and empirically. For this purpose a quantifiable model for the corporate governance environment is developed, which is analyzed employing a novel dataset for the period between 1991 and 2005. The author can show that the corporate governance environment in developing countries improves under certain circumstances, especially if the corporate governance environment of the source country of the investment is higher developed. The findings of this study help both the academic debate on corporate governance as well as the economic and political discussion on whether and how foreign investors influence the evolution of various institutions.

The editors of this book have pulled together a collection of chapters that review the spate of financial crises that have occurred in recent years starting with Mexico in 1994 and moving on to more recent crises in Turkey and Argentina. With impressive contributors such as Douglas Gale, Gabriel Palma and Andrew Gamble, the book is a timely and aut

Corporate law and governance are at the forefront of regulatory activities worldwide, and subject to increasing public attention in the wake of the Global Financial Crisis. Comprehensively referencing the key debates, the Handbook provides a much-needed framework for understanding the aims and methods of legal research in the field.

The book sets forth the economic rationale for international financial regulation and what role, if any, international regulation can play in effectively managing systemic risk while providing accountability to all affected nations. The book suggests that a particular type of global governance structure is necessary to have more efficient regulation of the international financial system.

Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.

This study examines the major macroeconomic determinants and the structural relationships of current account variability, capital flows, saving and investment in open economies that are linked to the international financial markets. It explores the appropriateness of domestic policy responses (such as money stock growth, government spending, openness criteria, GDP growth) and the size of population or the impact of external shocks (such as exchange rate variability and the terms of trade uncertainty) for determining the domestic saving-investment comovement and capital flows worldwide. This analysis finds that even high positive correlations between national saving and investment rates could naturally arise within a perfect capital mobility framework where domestic policy variability and external shocks are likely to play a significant role for capital inflow.

How does globalization change national economies and politics? Are rising levels of trade, capital flows, new communication technologies, and deregulation forcing all societies to converge toward the same structures of production and distribution? Suzanne Berger and Ronald Dore have brought together a distinguished group of experts to consider how the international economy shapes and transforms domestic structures.Drawing from experience in the United States, Europe, and Asia, the contributors ask whether competition, imitation, diffusion of best practice, trade, and financial flows are reducing national diversities. The authors seek to understand whether the sources of national political autonomy are undermined by changes in the international system. Can distinctive varieties of capitalism that incorporate unique and valued institutions for achieving social welfare survive in a global economy?The contributions to the volume present a challenge to conventional views on the extent and scope of globalization as well as to predictions of the imminent disappearance of the nation-state's leverage over the economy.