Abstract
This study uses a twostep GARCHM procedure to observe meanreturn and volatility transmissions between Latin American markets and to Latin America from external markets during the period 19932000. The results indicate that meanreturn transmissions are common both within region and from external markets. The volatility transmission results are consistent with contagion theory and indicate that traders use both domestic news events as well as information contained by volatility in other markets in their information set.