Financialisation and Real Investment in the European Union: Beneficial or Prejudicial Effects?

Barradas, Ricardo

doi:10.1080/09538259.2017.1348574

Cited by 40 publications

(22 citation statements)

References 80 publications

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“…As a result, investors invest more in tangible and/or in financial assets, which crowds out investments in real and/or knowledge-based activities (Barradas, 2017;Barradas and Lagoa, 2017b). The sixth explanation is connected to the resources' absorption by the financial sector, which reduces the existing resources to the real and productive sectors (Cecchetti and Kharroubi, 2012;Sawyer, 2014).…”

Section: Of Financialisationmentioning

confidence: 99%

Does the financial system support economic growth in times of financialisation? Evidence for Portugal

Barradas

2020

International Review of Applied Economics

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The purpose of this paper is the conduction of a time series econometric analysis in order to examine empirically the relationship between the financial system and economic growth in Portugal from 1977 to 2016. The Portuguese financial system has experienced a strong wave of privatisations, liberalisations and deregulations since the adhesion of Portugal to the European Economic Community in 1986, which has not favoured a sustained path of strong economic growth since then. The growth of the financial system played even a crucial role in the recent sovereign debt crisis in Portugal, casting doubts on the conventional hypothesis on the financegrowth nexus. The paper estimates a linear growth model and a non-linear growth model, which includes four proxies for the financial system (money supply, credit, financial value added and stock market capitalisation) and four further control variables (inflation, government consumption, trade openness and education). The paper finds a negative linear relationship between the banking system and Portuguese economic growth, a positive linear relationship between the stock markets and Portuguese economic growth, a concave quadratic relationship between the banking system and Portuguese economic growth, and a convex quadratic relationship between the stock markets and Portuguese economic growth. This suggests that Portuguese policy makers should canalise efforts to decrease the importance of banking system and to increase the importance of stock markets in order to support more robust economic growth in the coming years.

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Section: Of Financialisationmentioning

confidence: 99%

Does the financial system support economic growth in times of financialisation? Evidence for Portugal

Barradas

2020

International Review of Applied Economics

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“…The motivation for the growing interest in these studies is the observed fall in investment across economies in the Global North, dubbed “investmentless growth” in recent studies that partly explained it by low asset values, increasing monopoly power and rising intangible asset shares (Döttling et al., 2017; Gutiérrez & Philippon, 2017). Early studies problematized this “slowdown of accumulation” for a range of high‐income countries and detected statistical correlations with rising financial income or payouts (Orhangazi, 2008; Stockhammer, 2004)—findings which were often confirmed by later contributions (Barradas, 2017; Barradas & Lagoa, 2017; Hecht, 2014; Tori & Onaran, 2018, 2020). At the same time, researchers tried to insert some caution by pointing out that some financial assets might actually support investment (Davis, 2018a) and that interest rates might exert greater influence over firms' decisions than financial investment in general (Clévenot et al., 2010).…”

Section: A Structured Review Of the Literaturementioning

confidence: 99%

Whither corporate financialization? A literature review

2021

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In this paper, we review the burgeoning literature on the study of corporate financialization, distinguishing three strands of empirical, quantitative studies: (1) national-level and macro-comparative analysis, (2) sector-and firm-level analysis, and (3) econometric studies. We argue that corporations should be studied in their spatial organization.The spatial organization of the firm can be used to obscure corporate activity. Geography is not simply one of the many features of corporate structure but is key to it and therefore fundamental to shaping corporate financialization, although this is insufficiently expressed in accounting principles that provide consolidated accounts. Finally, we suggest four avenues for future studies: (1) to expand the geographical and temporal scope of research; (2) to pay close attention to how indicators are constructed; (3) to deconstruct large categories of analysis, such as 'financial assets'; (4) to systematically include liabilities in the analysis of non-financial corporations, especially in the face of the abundance of credit.

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“…Van Treeck ( 2008) aynı ülkeler ve değişkenleri ARDL yöntemini kullanarak test etmiş ve Stockhammer (2004) ile benzer sonuçları bulmuştur. Barradas (2017) finansallaşmayı finansal gelirler ve ödemeler ile ölçerek finansallaşmanın AB ülkelerinde reel yatırımlara zarar verdiğini ortaya koymuştur.…”

Section: İstikrarsızlık Görüşü: Finansal Piyasalar İstikrarsızlık Ve Krizlerunclassified

Finansal Gelişme ve Ekonomik Büyüme Arasındaki Doğrusal Olmayan İlişki: IMF Finansal Gelişmişlik Endeksi İle Yeni Bulgular

Bölükoğlu¹

2021

Ekonomi, Politika &Amp; Finans Araştırmaları Dergisi

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Öz2008 küresel finans krizinin ardından finans-büyüme ilişkisini açıklayan standart doğrusal görüşlere yönelik eleştiriler artmıştır. Buraya kadar finansbüyüme yazını finansal gelişimin sunduğu işlevler ve yarattığı istikrarsızlıklara odaklanmaktayken, buradan sonra finansal gelişim ve ekonomik büyüme arasında ters U ilişkisinin olduğunu öne süren çalışmalar da ortaya çıkmıştır. Bu bağlamda birbirinden farklı çalışmalar, finans-büyüme ilişkisinin finansal gelişmenin farklı aşamalarında farklı bir doğaya sahip olabileceğini göstermek adına eşik regresyonları tahmin etmişler ve birbiriyle çelişen sonuçlar öne sürmüşlerdir. Yazından farklı olarak, bu çalışma finans-büyüme ilişkisinin eşik analizini, finansal gelişmenin çoklu doğasını yansıtabilmesi nedeniyle IMF finansal gelişmişlik endeksini kullanarak ölçmektedir. Bu doğrultuda sabit etkili panel eşik regresyonu kullanılarak, 100 ülke için 1995-2018 yılları arasında bu ilişkinin doğası ölçülmüştür. Sonuçlara göre finansal gelişmenin düşük olduğu aşamada finans-büyüme arasında doğru orantılı bir ilişki bulunmaktayken bu ilişki finansal gelişmenin yüksek olduğu aşamada anlamsızlaşmaktadır. Çalışmanın sonunda, makro ihtiyati politikalar aracılığıyla finansal gelişmenin ekonomik büyümeyi olumlu etkilediği aşamalarda tutulması gerektiği tavsiye edilmiştir.

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Financialisation and Real Investment in the European Union: Beneficial or Prejudicial Effects?

Abstract: This is the peer reviewed version of the following article: Barradas, R. (2017). Financialisation and real investment in the European Union: beneficial or prejudicial effects?. Review of Political Economy.

Cited by 40 publications

References 80 publications

Does the financial system support economic growth in times of financialisation? Evidence for Portugal

Does the financial system support economic growth in times of financialisation? Evidence for Portugal

Whither corporate financialization? A literature review

Finansal Gelişme ve Ekonomik Büyüme Arasındaki Doğrusal Olmayan İlişki: IMF Finansal Gelişmişlik Endeksi İle Yeni Bulgular

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