Financialization and Economic Growth in Developing Countries

When Land Meets Finance in Latin America: Some Intersections between Financialization and Land Grabbing in Argentina and Brazil

“…In the specific case of Latin America, financialization has, in our view (see also [71]) three central aspects: a new organization of production, a new way of profit appropriation and a change in the behavior of economic agents [72]. The transnationalization of production and the consequent decoupling of demand and supply have led to the growth of imbalances within and between countries and regions.…”

“…Periphery countries have 'adopted' export promotion policies (it is clear that in a world-system sustained by 'new'-and sometimes 'old'-forms of coloniality, the line dividing the decisions 'freely' taken by peripheral countries and those imposed on them-by international financial institutions, their trading partners, the geopolitical and economic hegemonic powers, their own domestic political elites, transnational corporations, international financial markets, their creditors and so on-is, if it exists at all, always tenuous), but they do not always manage to achieve a current account surplus and face difficulties attracting capital flows to balance their external sector. They are therefore forced to offer increasingly higher financial returns and repress real wages [51] in order to compete [72].…”

Financialisation and Economic Policy: The Issue of Capital Control in the Developing Countries

“…Finally, in 2000, with the further implementation of NAFTA, which was signed in 1994, Mexico adopted financial innovation, creating the conditions for securitization activities and greater involvement of both foreign international banks and corporations. As a result, these foreign companies increased their control over the banking and non-banking sectors such as investment banks, insurance companies and pension funds (Levy-Orlik 2014). The major activity of the foreign companies operating in the Mexico's financial sector was to advance credits; however the availability of more capital did not benefit its economy.…”

“…Despite the fall in overall investment spending, those manufacturing industries specialising in exports of high technology have done well, while the traditional manufacturing industries have experienced a sharp decline in exports. The high tech industries are based on the maquiladora structure, which specialises in assembling goods that have strong import content and thus, to increase exports, imports must go up (Levy-Orlik 2014). In Mexico, the banking sector has experienced profound institutional changes as bank ownership was transferred to foreign corporations, who took advantage of oligopolistic banking structures to gain further control over this sector.…”

New Geographies of Residential Capitalism: Financialization of the Turkish Housing Market Since the Early 2000s

“…There is a new but growing body of literature on the financialization experiences of housing markets in EMEs, including Brazil (Klink, ; Klink and Denaldi, ; Sanfelici and Halbert, ; Pereira, ), Mexico (Levy‐Orlik, ), Turkey (Aslan and Dincer, ; Erol, ), China (Wu, ; Theurillat et al ., ), Russia (Badyina, ; Zavisca and Gerber, ), the Eastern European countries (Florea et al, ; Posfai et al ., ) and the peripheral European countries of Iceland, Ireland, Latvia and Estonia (see Saxegaard et al ., ; Bohle, ; , among others). These studies collectively suggest that the narratives of housing financialization in developing countries are different from those in the developed world.…”