TY - JOUR
T1 - Financialisation in emerging economies:
T2 - A systematic overview and comparison with Anglo-Saxon economies
AU - Karwowski, Ewa
AU - Stockhammer, Engelbert
N1 - This is an Accepted Manuscript of an article published by Taylor & Francis Group in Economic and Political Studies, on 5 February 2017, available online at: https://www.tandfonline.com/doi/full/10.1080/20954816.2016.1274520.
Under embargo until 5 July 2018.
PY - 2017/2/5
Y1 - 2017/2/5
N2 - Financialisation research has originally focussed on the US experience, but the concept is now increasingly applied to emerging economies (EMEs). There is a rich literature stressing peculiarities of individual country experiences, but little systematic comparison across EMEs. This paper fills this gap, providing an overview of the debate and identifying six financialisation interpretations for EMEs. These different interpretations stress (1) financial deregulation, (2) foreign financial inflows, (3) asset price volatility, (4) the shift from bank-based to market-based finance, (5) business debt, and (6) household indebtedness. We construct and compare measures of the six financialisation interpretations across a sample of 17 EMEs from Latin America, emerging Europe, Africa and Asia, contrasting them with the US and UK, two financialised economies. We find considerable variation in financialisation experiences of EMEs. Asset price volatility is found across the continents. Asia has been more exposed to capital inflows, stock markets have gained importance and private sector debt has risen. In emerging Europe financial deregulation has been more pronounced with lower levels but strong increases in household debt. The picture is similar in South Africa, the African EME in the sample, where household debt is comparatively high. Financialisation in Latin America is weaker according to our measures.
AB - Financialisation research has originally focussed on the US experience, but the concept is now increasingly applied to emerging economies (EMEs). There is a rich literature stressing peculiarities of individual country experiences, but little systematic comparison across EMEs. This paper fills this gap, providing an overview of the debate and identifying six financialisation interpretations for EMEs. These different interpretations stress (1) financial deregulation, (2) foreign financial inflows, (3) asset price volatility, (4) the shift from bank-based to market-based finance, (5) business debt, and (6) household indebtedness. We construct and compare measures of the six financialisation interpretations across a sample of 17 EMEs from Latin America, emerging Europe, Africa and Asia, contrasting them with the US and UK, two financialised economies. We find considerable variation in financialisation experiences of EMEs. Asset price volatility is found across the continents. Asia has been more exposed to capital inflows, stock markets have gained importance and private sector debt has risen. In emerging Europe financial deregulation has been more pronounced with lower levels but strong increases in household debt. The picture is similar in South Africa, the African EME in the sample, where household debt is comparatively high. Financialisation in Latin America is weaker according to our measures.
KW - financialisation
KW - emerging markets
KW - financial stability
KW - asset price volatility
KW - heterodox economics
UR - http://www.tandfonline.com/doi/full/10.1080/20954816.2016.1274520
U2 - 10.1080/20954816.2016.1274520
DO - 10.1080/20954816.2016.1274520
M3 - Article
SN - 2470-4024
VL - 5
SP - 60
EP - 86
JO - Economic and Political Studies
JF - Economic and Political Studies
IS - 1
ER -