Paula Heliodoro – Polytechnic Institute of Setúbal, School of Business and Administration, Esce, Campus do Instituto
Politécnico de Setúbal, Estefanilha, 2914-503 Setúbal, Portugal
Paulo Alexandre – Polytechnic Institute of Setúbal, School of Business and Administration, Esce, Campus do Instituto
Politécnico de Setúbal, Estefanilha, 2914-503 Setúbal, Portugal
Rui Dias – Polytechnic Institute of Setúbal, School of Business and Administration, Esce, Campus do Instituto
Politécnico de Setúbal, Estefanilha, 2914-503 Setúbal, Portugal




5th International Scientific-Business Conference – LIMEN 2019 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – SELECTED PAPERS, Graz, Austria, December 12, 2019, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-27-1, ISSN 2683-6149, DOI:



This paper aims to analyze whether the financial markets of the LAC Region converge towards
integration in the post-global financial crisis period. The purpose of this analysis is to provide
answers to two questions, namely, whether Latin American financial markets have increased their
convergence as a result of the global financial crisis? If so, could portfolio diversification be called
into question? The results suggest that after the 2008 financial crisis, Latin American financial markets
showed a higher rate of convergence, measured by the correlation between regional market yields.
In addition, we found convergence in the coefficient of movements between Latin American financial
markets and the US, using dynamic linear models at the regional level. Specifically, we found consistent
movements in market returns in the LAC Region, and the S&P 500 index, after the financial crisis. In
conclusion, this type of convergence may be a sign of the acceleration of the integration process among
Latin American financial markets, which may hinder portfolio diversification.



Financial integration, Emerging markets, Risk diversification, Dynamic linear models.




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