Political Risk in Latin America
Abstract Political risk (PR) is a fascinating concept in the political science literature, yet researchers could do more to evaluate PR in Latin America. In this paper, we contribute to filling the gap by presenting the risks investors must consider when building portfolios in developing economi...
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| Format: | Article |
| Language: | English |
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Universidad ICESI
2023-12-01
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| Series: | Trans-pasando Fronteras |
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| Online Access: | https://www.icesi.edu.co/revistas/index.php/trans-pasando_fronteras/article/view/5753 |
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| author | David Soto Bello |
| author_facet | David Soto Bello |
| author_sort | David Soto Bello |
| collection | DOAJ |
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Abstract
Political risk (PR) is a fascinating concept in the political science literature, yet researchers could do more to evaluate PR in Latin America. In this paper, we contribute to filling the gap by presenting the risks investors must consider when building portfolios in developing economies, such as changes in economic policy or impeachment processes. As for the methodology, widely accepted statistical methods are used to test our hypotheses as well as reliable data. Regarding our findings, we discovered that political color determines economic policy (to a certain degree) and that macroeconomic consequences vary based on policy. In addition, we indicate the adverse effects that specific economic policies and impeachment processes have on Latin American stock markets. In conclusion, this research proposed to advance the political science literature and finance interception, and it does it by motivating the discussions.
Keywords: Political Risk, Economic Performance, Economic Policy.
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| format | Article |
| id | doaj-art-400699e3e7c944cf8593ff7ce86c5f45 |
| institution | Kabale University |
| issn | 2248-7212 2322-9152 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Universidad ICESI |
| record_format | Article |
| series | Trans-pasando Fronteras |
| spelling | doaj-art-400699e3e7c944cf8593ff7ce86c5f452025-02-10T20:15:19ZengUniversidad ICESITrans-pasando Fronteras2248-72122322-91522023-12-012010.18046/retf.i20.5753Political Risk in Latin AmericaDavid Soto Bello Abstract Political risk (PR) is a fascinating concept in the political science literature, yet researchers could do more to evaluate PR in Latin America. In this paper, we contribute to filling the gap by presenting the risks investors must consider when building portfolios in developing economies, such as changes in economic policy or impeachment processes. As for the methodology, widely accepted statistical methods are used to test our hypotheses as well as reliable data. Regarding our findings, we discovered that political color determines economic policy (to a certain degree) and that macroeconomic consequences vary based on policy. In addition, we indicate the adverse effects that specific economic policies and impeachment processes have on Latin American stock markets. In conclusion, this research proposed to advance the political science literature and finance interception, and it does it by motivating the discussions. Keywords: Political Risk, Economic Performance, Economic Policy. https://www.icesi.edu.co/revistas/index.php/trans-pasando_fronteras/article/view/5753Political RiskEconomic PerformanceEconomic Policy. |
| spellingShingle | David Soto Bello Political Risk in Latin America Trans-pasando Fronteras Political Risk Economic Performance Economic Policy. |
| title | Political Risk in Latin America |
| title_full | Political Risk in Latin America |
| title_fullStr | Political Risk in Latin America |
| title_full_unstemmed | Political Risk in Latin America |
| title_short | Political Risk in Latin America |
| title_sort | political risk in latin america |
| topic | Political Risk Economic Performance Economic Policy. |
| url | https://www.icesi.edu.co/revistas/index.php/trans-pasando_fronteras/article/view/5753 |
| work_keys_str_mv | AT davidsotobello politicalriskinlatinamerica |