Semi-peripheral financialisation: the case of Portugal

Rodrigues, João; Santos, Ana Cordeiro; Teles, Nuno

doi:10.1080/09692290.2016.1143381

Cited by 65 publications

(48 citation statements)

References 36 publications

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“…Portugal's financialisation process has specific characteristics and Rodrigues et al 2016), and not all variables evolved in line with what is expected in an increasingly financialised economy; more specifically there was not a clear upward trend in financial activity ( Figure A6 in the Appendix) or in financial payments by non-financial firms ( Figure A8 in the Appendix), and there was a clear upward trend in government activity ( Figure A7 in the Appendix). However, the importance of trade unions has declined sharply since the 1980s ( Figure A9 in the Appendix) in keeping with the characteristics of an increasingly financialised economy.…”

Section: The Relationship Between Financialisation and Functional Incmentioning

confidence: 65%

“…As a whole, rentiers probably exert less pressure through financial markets than in other countries; however, the pressure exerted by shareholders at the annual general meeting and by the management board of non-quoted firms cannot be ignored. A systematic analysis of the financialisation process in Portugal can be found in Barradas et al (2015) and in Rodrigues et al (2016).…”

Section: Introductionmentioning

confidence: 99%

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Functional income distribution in portugal: The role of financialisation and other related determinants

Barradas

Lagoa

2017

Soc Ec

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This paper makes an empirical analysis of the relationship between the labour income share and both financialisation and other related variables in Portugal from 1978 to 2012. We estimate an equation for the labour share that includes standard variables (technological progress, globalisation, education and business cycle) and variables to capture the effect of financialisation. We formulate the hypothesis that the financialisation process may lead to a rise in the inequality of functional income distribution through three channels: the change in the sectorial composition of the economy (due to both the increase in the weight of the financial activity and the decrease in government activity), the diffusion of shareholder value governance practices and the weakening of trade unions. Our results show that the financialisation process as an indirect long-term effect on the labour share through its impact on government activity and trade union density. The paper also finds evidence supporting the traditional explanations for functional income distribution, namely globalisation, education and business cycle. FUNCTIONAL INCOME DISTRIBUTION IN PORTUGAL: THE ROLE OF FINANCIALISATION AND OTHER RELATED DETERMINANTS ABSTRACTThis paper makes an empirical analysis of the relationship between the labour income share and both financialisation and other related variables in Portugal from 1978 to 2012. We estimate an equation for the labour share that includes standard variables (technological progress, globalisation, education and business cycle) and variables to capture the effect of financialisation. We formulate the hypothesis that the financialisation process may lead to a rise in the inequality of functional income distribution through three channels: the change in the sectorial composition of the economy (due to both the increase in the weight of the financial activity and the decrease in government activity), the diffusion of shareholder value governance practices and the weakening of trade unions. Our results show that the financialisation process as an indirect long-term effect on the labour share through its impact on government activity and trade union density. The paper also finds evidence supporting the traditional explanations for functional income distribution, namely globalisation, education and business cycle.

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Section: The Relationship Between Financialisation and Functional Incmentioning

confidence: 65%

Section: Introductionmentioning

confidence: 99%

Functional income distribution in portugal: The role of financialisation and other related determinants

Barradas

Lagoa

2017

Soc Ec

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“…This gap is now considered increasingly problematic and a number of works have called for a broader perspective that analyses financialization through the lens of global hierarchical relations and examines how non‐core countries are implicated in this (Kaltenbrunner and Painceira, ). Today a growing number of studies within international political economy, heterodox economics and economic geography take the uneven dynamics of global capitalism as a starting point to consider how non‐core economies have become entrenched into dynamics of financialization from positions of subordination (Becker et al , ; Painceira, ; Lapavitsas, ; Rodrigues et al , ). They show that while countries of the semi‐periphery do not necessarily exhibit the same complex tools and the same pervasiveness of finance, they are drawn in and complement financialization in core countries from a position of subordination, often reproducing dynamics of uneven development and peripheralization (McKenzie and Pons‐Vignon, 2012).…”

Section: Accounting For Real Estate Financialization—global Hierarchimentioning

confidence: 99%

How Subordinate Financialization Shapes Urban Development: The Rise and Fall of Warsaw's Służewiec Business District

Büdenbender

Aalbers

2019

Int J Urban Regional Res

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This article studies the development of Warsaw's Służewiec neighbourhood, Poland's largest business district, as a case of real estate financialization. We argue that the neighbourhood's chaotic 'de-contextualized' growth was shaped by Poland's semi-peripheral position in the global economy on the one hand--enabling a process of subordinate financialization--and legacies of state socialism on the other. In so doing, we mobilize research on peripheral financialization and global economic hierarchies, and studies of post-socialism to enhance debates about real estate financialization. Commercial real estate--and office development in particular--is a crucial domain in which contemporary core-periphery structures are produced and negotiated. A key function of subordinate financialization is to absorb globally mobile capital--the product of financialization in the core. The case of Służewiec shows that only by considering the interplay of global hierarchies (Poland's position as capital absorbent), local dynamics ( fragmented urban development, which was characterized by competition among these unequal municipalities, with local growth coalitions in some municipalities, but not in others) and specific historical legacies (Warsaw's socialist-time functional organization and its transformation, which weakened the city) can we fully understand the specific dynamics that shape real estate financialization in different places.

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“…The Portuguese economy and society has followed what has been conceptualised as a semi-peripheral type of financialisation (Rodrigues et al, 2016).4 This notion was forged to account for, on one hand, the intermediate position of the Portuguese economy in the world economy, that is, an industrialised country that is increasingly unable to compete with countries with which it is most closely integrated, and, on the other hand, the institutional features of its financial system, which shares characteristics of both core and peripheral countries, being mostly shaped by the process of European integration and by the predominance of loanable capital within the framework of the Euro. The concept of semi-peripheral financialisation in the Portuguese context thus underlines the more predominant and critical role of bank loanable capital in shaping recent changes in the economy and in society, as well as its role in intertwining international finance with Portuguese economic agents, similar to other peripheral and semi-peripheral contexts (e.g.…”

Section: The Semi-peripheral Nature Of Financialisation In Portugalmentioning

confidence: 99%

Financialisation of pensions in semi-peripheral Portugal

Rodrigues

Santos

Teles

2017

Global Social Policy

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This article aims at contributing to the literature on the financialisation of pensions in Europe by examining the transformations occurring in semi-peripheral Portugal. The Portuguese case accounts for the variegated nature of financialisation in general, and of pension provision in particular, throughout Europe. While the country followed similar processes to those of core European Union (EU) countries, leading to an increasingly integrated financial sector in the international arena, this integration was mainly led by the banking sector rather than by capital markets. This helps account for the relatively reduced role of private retirement income products in the country. Nonetheless, the Portuguese pension system has been equally subject to reform, aiming at reducing its weight in public expenditure. The result is a contraction in coverage and benefit without achieving an equivalent match in supplementary private forms of pension provision. Under a prolonged period of stagnation and crisis, the deterioration of State pensions for the majority continues while a residual private, outward-oriented and foreign-owned pension sector grows for the most affluent, further exposing the systemic and variegated nature of financialisation processes in the semi-periphery.

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Semi-peripheral financialisation: the case of Portugal

Cited by 65 publications

References 36 publications

Functional income distribution in portugal: The role of financialisation and other related determinants

Functional income distribution in portugal: The role of financialisation and other related determinants

How Subordinate Financialization Shapes Urban Development: The Rise and Fall of Warsaw's Służewiec Business District

Financialisation of pensions in semi-peripheral Portugal

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