Chapter 7. Legal Barriers to Regional Financial Integration in Latin America

Abstract

Legal frameworks shape the context in which economic transactions take place, both within a given economy and between economies. Laws and regulations allow private economic agents to establish and (re)organize themselves, to seek finance, to enter markets by selling products and services, to enforce payment claims when customers are entering into default on obligations, and to exit a market in an orderly way when so desired or required. It is widely accepted that well-designed legal frameworks for market entry, operation, and exit can promote economic growth and, from a cross-border perspective, integration of economies and financial systems.