Peripheral financialization and the transformation of dependency: a view from Latin America

Reis, Nadine; Oliveira, Felipe Antunes de

doi:10.1080/09692290.2021.2013290

Cited by 18 publications

(5 citation statements)

References 60 publications

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“…As result, we would expect state financial marketization limits the growth of the financial wage premium since financial labor cannot fully exert its market power over state-owned institutions. In contrast, the prominence of foreign institutions in the financial sectors of Brazil and India may induce the importation of compensation practices from advanced economies and realigned the interest of a new financial elite in both countries (Linsi et al, 2023; Reis and Oliveria, 2021). Therefore, we may expect the following:…”

Section: Financialization Of the Bricmentioning

confidence: 99%

Financialization and top incomes in emerging economies: A comparative distributional analysis of the financial wage premium in the BRIC

Roberts,

Casey,

Hodges

2023

International Journal of Comparative Sociology

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Prior studies on emerging economies contend that increasing returns to human capital has contributed to the growth of wage inequality over the last few decades. However, this explanation fails to account for an important dynamic of contemporary wage inequality: the growth of top labor incomes. Research on advanced economies show the emergence of a wage premium in the financial sector increased top labor incomes, but studies have yet to investigate whether a financial wage premium is contributing to the growth of top labor incomes in emerging economies. The present study addresses this theoretical and empirical gap by conceptualizing and measuring the financial wage premium across the distributions of labor income in the most important subset of emerging economies: Brazil, Russia, India, and China (BRIC). Drawing on harmonized labor force data from the Luxembourg Income Study, we utilize unconditional quantile regression modeling and treatment effect estimation to examine the financial wage premium across the distributions of labor income in the BRIC before and after the Great Recession. Consistent with studies on advanced economies, we find a substantial wage premium among top earners in the financial sectors of the BRIC, which has grew in the post-recession period. However, we find significant variation in size and growth of the financial wage premium because of the variegated nature of financialization across the BRIC. We conclude by suggesting that subsequent studies should explore the heterogeneous effects of subordinate and state financialization on wage dynamics in emerging economies.

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Section: Financialization Of the Bricmentioning

confidence: 99%

Financialization and top incomes in emerging economies: A comparative distributional analysis of the financial wage premium in the BRIC

Roberts,

Casey,

Hodges

2023

International Journal of Comparative Sociology

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“…At the intersection of these two literatures, the lending policies of the World Bank (Weaver, 2008) and the IMF (Kentikelenis et al, 2016;Nelson, 2017;Kentikelenis and Babb, 2019) have featured prominently. Although an IPE tradition exists that has studied finance directly (Strange, 1988), it was only after the global financial crisis that more IPE scholars began to study issues such as the political economy of banking (Copelovitch and Singer, 2020), foreign direct investment (FDI) (Danzman, 2019), financial asset ownership (Chwieroth and Walter, 2019;Pagliari et al, 2020), investor-state arbitration (John, 2018;Williams and Dafe, 2021), and financial dependency (Reis and de Oliveira, 2021). Here, too, many recent contributions are located at the intersection of IPE and CPE, boding well for the future rapprochement of the two subdisciplines.…”

Section: Finance In Comparative and International Political Economy A...mentioning

confidence: 99%

The three phases of financial power: Leverage, infrastructure, and enforcement

Braun¹,

Koddenbrock²

2022

Preprint

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How does global capitalism – a highly unstable system that creates vast inequalities – continue to reproduce itself? Despite the burgeoning literature on financialization, large gaps remain in our understanding of the profitability and concentration of the financial sector, and of its ability to reassert itself after financial crises. This chapter develops a framework for the analysis of the political economy of global finance that centers on the claim relation between creditors and debtors. It foregrounds creation, trading, and enforcement as key stages in the life-cycle of financial claims. At each stage, the conflict between creditors and debtors takes different forms as both sides seek to manipulate the claim relationship to their advantage. However, the two sides in this tussle are not equal. We introduce the concepts of leverage power, infrastructural power and enforcement power as analytical tools to study the inequalities and hierarchies embedded in, and reproduced via, credit-debt relationships in contemporary global financial capitalism.

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“…Lampa, 2021;Tavares, 1985), regulationism (Becker et al, 2010), Marxism (e.g. Amin, 1974;Patnaik and Patnaik, 2021;Reis and Antunes de Oliveira, 2023), and post-Keynesianism (Dow, 1999;Levy-Orlik, 2022;Prates and Andrade, 2013). is mediated in a specific context and thus its concrete outcomes.…”

Section: Introductionmentioning

confidence: 99%

Local Currency Bond Markets in Africa: Resilience and Subordination

Dafe,

Kaltenbrunner,

Kvangraven

et al. 2023

Development and Change

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This article examines the development and implications of local currency bond markets (LCBMs) in African countries in the context of international financial subordination (IFS). Despite the promotion of LCBMs as a solution to debt vulnerability, there is a dearth of research that offers a systematic empirical examination of their actual benefits along with conceptual explanations as to when and why such benefits may or may not materialize. This is especially true for countries at the bottom of the global economic hierarchy. To explore how the subordination in global production and financial systems shapes LCBM development, the article offers an empirical analysis of selected African countries that combines interviews with policy makers, officials and experts with statistical data. The findings suggest that while LCBMs offer some benefits, such as mitigating risks associated with foreign currency debt, their potential is limited by the structural processes created by IFS, such as their dependence on the global financial cycle, the relatively higher costs of this debt and the sustained constraint on macroeconomic policy making. However, there are also domestic factors which shape how these structural constraints are mediated in the context of LCBM development — in particular, historically developed financial structures of developing countries, the political economy of the state and the structure of production. This study thus contributes to the debate about the developmental benefits of domestic debt market development and the emerging research agenda on IFS.

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Peripheral financialization and the transformation of dependency: a view from Latin America

Cited by 18 publications

References 60 publications

Financialization and top incomes in emerging economies: A comparative distributional analysis of the financial wage premium in the BRIC

Financialization and top incomes in emerging economies: A comparative distributional analysis of the financial wage premium in the BRIC

The three phases of financial power: Leverage, infrastructure, and enforcement

Local Currency Bond Markets in Africa: Resilience and Subordination

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