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Dimensions and Determinants of Financialisation: Comparing OECD Countries since 1997

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Dimensions and Determinants of Financialisation : Comparing OECD Countries since 1997. / Karwowski, Ewa; Stockhammer, Engelbert; Shabani, Mimoza.

In: New Political Economy, Vol. 25, No. 6, 10.10.2019, p. 957-977.

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Karwowski, Ewa ; Stockhammer, Engelbert ; Shabani, Mimoza. / Dimensions and Determinants of Financialisation : Comparing OECD Countries since 1997. In: New Political Economy. 2019 ; Vol. 25, No. 6. pp. 957-977.

Bibtex

@article{719202b75d304bb288e39916e0b38c59,
title = "Dimensions and Determinants of Financialisation: Comparing OECD Countries since 1997",
abstract = "The financialisation literature has grown over the past decades. Despite a generally accepted definition, financialisation has been used to describe different phenomena. We distinguish between financialisation of non-financial companies, households and the financial sector and use activity and vulnerability measures. We identify seven financialisation hypotheses in the literature and empirically investigate them in a cross-country analysis for 17 OECD countries and two time periods, 1997–2007 as well as 2008–17. We find different financialisation measures are only weakly correlated, suggesting the existence of distinct financialisation processes. There is strong evidence that financialisation is linked to asset price inflation and correlated with a debt-driven demand regime. Financial deregulation encourages financialisation. There is limited evidence that market-based financial systems are more financialised. Foreign financial inflows do not seem a main driver. We do not find indication that an investment slowdown precedes financialisation. Our findings suggest financialisation should be understood as a variegated process, playing out differently across economic sectors and countries.",
keywords = "Financialisation, cross country analysis, financial deregulation, property prices",
author = "Ewa Karwowski and Engelbert Stockhammer and Mimoza Shabani",
year = "2019",
month = oct,
day = "10",
doi = "10.1080/13563467.2019.1664446",
language = "English",
volume = "25",
pages = "957--977",
journal = "New Political Economy",
issn = "1356-3467",
publisher = "Taylor & Francis",
number = "6",

}

RIS

TY - JOUR

T1 - Dimensions and Determinants of Financialisation

T2 - Comparing OECD Countries since 1997

AU - Karwowski, Ewa

AU - Stockhammer, Engelbert

AU - Shabani, Mimoza

PY - 2019/10/10

Y1 - 2019/10/10

N2 - The financialisation literature has grown over the past decades. Despite a generally accepted definition, financialisation has been used to describe different phenomena. We distinguish between financialisation of non-financial companies, households and the financial sector and use activity and vulnerability measures. We identify seven financialisation hypotheses in the literature and empirically investigate them in a cross-country analysis for 17 OECD countries and two time periods, 1997–2007 as well as 2008–17. We find different financialisation measures are only weakly correlated, suggesting the existence of distinct financialisation processes. There is strong evidence that financialisation is linked to asset price inflation and correlated with a debt-driven demand regime. Financial deregulation encourages financialisation. There is limited evidence that market-based financial systems are more financialised. Foreign financial inflows do not seem a main driver. We do not find indication that an investment slowdown precedes financialisation. Our findings suggest financialisation should be understood as a variegated process, playing out differently across economic sectors and countries.

AB - The financialisation literature has grown over the past decades. Despite a generally accepted definition, financialisation has been used to describe different phenomena. We distinguish between financialisation of non-financial companies, households and the financial sector and use activity and vulnerability measures. We identify seven financialisation hypotheses in the literature and empirically investigate them in a cross-country analysis for 17 OECD countries and two time periods, 1997–2007 as well as 2008–17. We find different financialisation measures are only weakly correlated, suggesting the existence of distinct financialisation processes. There is strong evidence that financialisation is linked to asset price inflation and correlated with a debt-driven demand regime. Financial deregulation encourages financialisation. There is limited evidence that market-based financial systems are more financialised. Foreign financial inflows do not seem a main driver. We do not find indication that an investment slowdown precedes financialisation. Our findings suggest financialisation should be understood as a variegated process, playing out differently across economic sectors and countries.

KW - Financialisation

KW - cross country analysis

KW - financial deregulation

KW - property prices

UR - http://www.scopus.com/inward/record.url?scp=85074034083&partnerID=8YFLogxK

U2 - 10.1080/13563467.2019.1664446

DO - 10.1080/13563467.2019.1664446

M3 - Article

VL - 25

SP - 957

EP - 977

JO - New Political Economy

JF - New Political Economy

SN - 1356-3467

IS - 6

ER -