Boosting Long-Term Investments, Curbing Risky Portfolio Inflows in Developing Nations
The article looks at how foreign investment in Latin America can help developing countries after the Mexican financial crisis. It suggests that countries should focus on getting investors who are committed to improving local businesses in the long term. These "relational investors" can bring many benefits. On the other hand, countries should be careful with portfolio investments, which can be risky and shouldn't be relied on too much.