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This paper estimates the long-term effect of the repatriation of US-FDI profits on a set of fourteen Latin American economies, following a methodology of panel cointegration. The period of analysis is 1980-2011. The results suggest that investment in physical capital, employees, public spending on education and repatriation of profits from FDI have an impact on the economic activity in the region. In particular, repatriation shows negative impacts and becomes a barrier to economic growth in the region. Thus, a regulation that encourages reinvestment in competitive economies favors the economic performance in those countries [ABSTRACT FROM AUTHOR]

This paper analyzes whether the foreign aid recently provided for Latin America and the Caribbean (LAC) is efficiently distributed or not. Despite the substantial progress attained in LAC, economic growth and poverty reduction in countries of this region lag behind countries in other regions, especially East Asia. Moreover, recent studies indicate that when donor countries allocate aid, they increasingly select countries which can use aid effectively for economic growth and poverty reduction. For this reason, we suspect that foreign aid for LAC has been less effective in promoting growth and reducing poverty mainly because it was allocated to countries in LAC inefficiently For this study, we consider both recipient countries' development needs and donor countries' economic interests in allocating foreign aid at the same time. We analyzed relevant data from 22 Development Assistance Committee (DAC) member countries and 32 LAC countries during 2005-2009. In addition, we also considered Korea's distribution of foreign aid for comparison with aid allocations by other DAC member countries. The results show that foreign aid allocations by Korea and other DAC member states for countries in LAC should be improved substantially so that countries in LAC can use the foreign aid effectively for economic growth and poverty reduction. [ABSTRACT FROM AUTHOR]

This paper presents the argument that the economies of Latin America had a relatively rapid recovery from the crisis, a recovery which cannot be attributed to the Latin American countries' domestic macroeconomic policies. Although macroeconomic policy cannot be ignored as important for good economic performance during the boom period and recovery, we demonstrate that the recovery has been based upon a combination of favorable external conditions. To show the limitations of macroeconomic policies we analyze their characteristics during the economic boom period, which is considered erroneously countercyclical. Finally, we examine how policies affected the recovery, revealing their limitations. [ABSTRACT FROM AUTHOR]