The unique development of non-financial corporations in Latin America

This chapter discuss the impact of international capital movements on non-financial corporations, analysing the volume and composition of Foreign Direct Investment (FDI) and highlighting its effects on Latin American and Caribbean (LAC) economies and the organisation of non-financial corporations originated in the region (termed multilatinas), in order to compare overcapitalisation practices with those of multinationals based in developed countries. We show that multilatinas’ overcapitalisation practices rely on variety of forms that have transformed their growth and indebtedness strategy in such way, producing a falling tendency on fixed investment, and a mix up between falling profits and deterioration of solvency indicators, this situation bounds the continuity of this particular trend of multilatinas´ overcapitalisation process.