Financialisation in emerging economies: A systematic overview and comparison with Anglo-Saxon economies

Ewa Karwowski, Engelbert Stockhammer

Research output: Contribution to journalArticlepeer-review

30 Citations (Scopus)
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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.
Original languageEnglish
Pages (from-to)60-86
Number of pages27
JournalEconomic and Political Studies
Issue number1
Publication statusPublished - 5 Feb 2017


  • financialisation
  • emerging markets
  • financial stability
  • asset price volatility
  • heterodox economics


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