Financialization in Developing and Emerging Countries

Bonizzi, Bruno

doi:10.2753/ijp0891-1916420405

Cited by 166 publications

(112 citation statements)

References 47 publications

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“…The aspects investigated include the increased holdings of financial assets and market funding by large nonfinancial corporations (NFCs) (Orhangazi, 2008;Stockhammer, 2004); the importance of shareholder value (Lazonick and O'Sullivan, 2000); the rising involvement of households in predatory debt relations (Aalbers, 2008;Dymski, 2010;Montgomerie, 2009); the changing income pattern of banks, from deposits and lending to fees and commissions (Erturk and Solari, 2007;dos Santos, 2009); the rise in bank funding from markets rather than from deposit taking (Lapavitsas, 2009); and the financialization of everyday life (Langley, 2008). Similar phenomena have also been highlighted in DEEs: see Bonizzi (2013) and Karwowski and Stockhammer (2017) for overviews. For example, Akkemik andÖzen (2014), Correa et al (2012), Powell (2013) and Rethel (2010) show the increased involvement of DEE NFCs with (international) financial markets.…”

Section: Putting the International Into Financializationsupporting

confidence: 67%

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The International Dimension of Financialization in Developing and Emerging Economies

Bortz¹,

Kaltenbrunner²

2017

Development and Change

117

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This contribution discusses the international aspect of financialization in developing and emerging economies (DEEs). It argues that international financialization is more than just an increase in cross‐border capital flows but entails distinct qualitative changes in the way economic agents are integrated into international financial markets. Moreover, in line with the emerging literature on subordinated financialization, the article shows how these changes have been shaped by, and have themselves exacerbated, the subordinated position of DEEs in the international economic and financial system and hence have contributed to uneven international development. Based on an empirical discussion of recent changes in DEEs’ international financial integration, the article concludes with some concrete policy proposals on how to confront these international aspects of financialization.

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Section: Putting the International Into Financializationsupporting

confidence: 67%

“…Similar phenomena have also been highlighted in DEEs: see Bonizzi () and Karwowski and Stockhammer () for overviews. For example, Akkemik and Özen (), Correa et al.…”

Section: Putting the International Into Financializationsupporting

confidence: 62%

The International Dimension of Financialization in Developing and Emerging Economies

Bortz¹,

Kaltenbrunner²

2017

Development and Change

117

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“…The research agenda on financialisation in EMEs developed only in recent years, remaining a nascent area of research (see Bonizzi, 2013 for a detailed survey). Attempts to address financialisation can mainly be found within heterodox economics and economic sociology.…”

Section: Financialisation In Emerging Economies: a Literature Reviewmentioning

confidence: 99%

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

Karwowski

Stockhammer

2017

Economic and Political Studies

126

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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 bankbased 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 continents. Asia has been more exposed to capital inflows, stock markets have gained importance and private sector debt 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.Keywords: Financialisation; Emerging markets; Financial instability; Asset price volatility; Heterodox economics JEL codes: F30; F34; G01; G12; G15; B50 Acknowledgements: We would like to thank our colleague Rex McKenzie for comments on the paper. The usual disclaimers apply.

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“…Consequently, financialization does not always result in more liquidity, faster monetary circulation, or abstracted debt dynamics (Bonizzi 2013;MacKenzie et al 2012;Pitluck 2011). For example, Truitt (2018) demonstrates that financialization can generate both demonetization and monetization of gold.…”

Section: Financialization From Political Strugglementioning

confidence: 99%

Finance beyond function: Three causal explanations for financialization

Pitluck

Mattioli

Souleles

2018

Economic Anthropology

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This article suggests that it is advantageous for social scientists to deliberately depart from functionalist theories seeking to explain the expansion of financial instruments and logics across social life. Rather, we identify three causes of financialization from three extant clusters of scholastic activity: an organic political economy that sees finance expanding as a product or by‐product of larger state‐ and imperial‐level political struggles, a relational sociology that sees the ways that finance expands by becoming another medium for expressing and constraining social relationships, and a cultural analysis that observes the increasing redefinition of discursive and material practices as financial. Across this larger discussion, we introduce and situate the contributions to this journal's special issue on financialization.

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Financialization in Developing and Emerging Countries

Cited by 166 publications

References 47 publications

The International Dimension of Financialization in Developing and Emerging Economies

The International Dimension of Financialization in Developing and Emerging Economies

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

Finance beyond function: Three causal explanations for financialization

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