de Piniés, Jaimede la Torre, AugustoBeylis, Guillermo2014-04-242014-04-242014-04-24978-1-4648-0286-710.1596/978-1-4648-0286-7https://hdl.handle.net/10986/18029As usual in this series, Chapter 1 reviews the configuration of global risks and assesses the outstanding short term opportunities and challenges facing the LAC region. A special focus is placed this time around on the difference between exposure and vulnerability to exogenous shocks, with the latter assessed by adjusting exposure for a country’s shock absorption policy capacity. Given the global context and associated concerns with capital flow volatility, in Chapter 2 we take a look at the comparatively more stable components of international flows: FDI and Remittances. The cyclicality and volatility, as well as the joint determinants of FDI and Remittances are reviewed.en-USCC BY 3.0 IGOcapital flow volatilityFDIforeign direct investmentgrowthinternational flowsproductivityremittancesreversibilitysources of financingstability10.1596/978-1-4648-0286-7