Towards a Marxist Theory of Financialized Capitalism

Powell, Jeffrey

doi:10.1093/oxfordhb/9780190695545.013.37

Cited by 7 publications

(7 citation statements)

References 61 publications

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“…The theory of financialization adopted here draws a necessary distinction between processes which are cyclical in nature, and secular changes in the relations of capitalist accumulation (Powell, 2018). The former are both temporally and spatially limited, with financialization giving way to de-financialization.…”

Section: Introductionmentioning

confidence: 99%

Subordinate Financialization in Emerging Capitalist Economies

Bonizzi¹,

Kaltenbrunner²,

Powell³

2020

The Routledge International Handbook of Financialization

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In the explosion of literature on financialization, there is a much smaller but growing interest in what the phenomenon means for emerging capitalist economies (ECEs). We hold that for agents located in ECEs, the encounter with financialization is from a subordinate position: first, in relation to global production, ECE firms occupy subordinate locations in global production networks, providing cheap labor and raw, or at best, intermediate inputs; Second, in relation to global finance, ECEs are structurally subordinated to ACEs, that is, both trade and the most liquid capital markets are denominated in the currency of ACEs. Subordination in production means firms based in ECEs are able to capture less of the value created than firms higher in the hierarchy and must pay more to hedge macroeconomic risk. In circulation, strategies may emerge in ACEs wherein increased household indebtedness and/or asset market inflation maintain aggregate demand. In finance, ECEs' subordinate position in relation to money and capital markets means that capital inflows are predominantly short-term, seeking financial yields rather than assuming productive risk. The results are continued volatility, external vulnerability and subordination to the currencies of the ACEs, which themselves serve to further deepen domestic financialization. We conclude that, while by no means pre-destined, financialization as experienced in ECEs may serve to further cement their subordinate position in the global structure.

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Section: Introductionmentioning

confidence: 99%

Subordinate Financialization in Emerging Capitalist Economies

Bonizzi¹,

Kaltenbrunner²,

Powell³

2020

The Routledge International Handbook of Financialization

Self Cite

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“…Marxism theory proposed by Marx and Engels (1926) is a social change theory with implications for the analysis of industrial relations within capitalist societies and does not strictly explain the theory of industrial relations. The Marxist theory of industrial relations claims that capitalism breeds corruption and greed, leaving the employee to suffer while corporations rake in profits (Powell, 2018). Marxists claim that institutions would be far better employers if run as state organizations, while compensation would be standardized to promote a co-operative, noncompetitive work environment.…”

Section: Marxist Theorymentioning

confidence: 99%

Abdul, G., A., & Sehar, S. (2015). Conflict management and organizational performance: A case study of Askari Bank Ltd. Research Journal of Finance and Accounting. 6(11), 201. Adhiambo, R., & Simatwa, M. (2011). Assessment of conflict management and resolution in public secondary schools in Kenya: A case study of Nyakach District. International Research Journal 2(4), 1074-1088. Adomi, E., & Anie, S. (2015). Conflict management in Nigerian University Libraries. Journal of Library Management, 2

Ngulumbu

Waswa

2022

JOSM

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The Constitution of Kenya specifically recognizes the freedom of association to form and belong to trade unions. However, despite the adoption of the Labour Relations Act, union practice is still hampered by excessive restrictions. The EPZ companies are labor intensive requiring a large amount of labor to produce its goods or service and thus, the welfare of the employees play a key role in their functions. This study sought to determine the effect of trade union practices on employees’ welfare at export processing zones industries in Athi River, Kenya. The specific objectives sought to determine the effect of collective bargaining agreements, industrial action, dispute resolution and trade union representation on employees’ welfare at export processing zones industries in Athi River, Kenya. The study employed a descriptive research design. Primary data was collected by means of a structured questionnaire. The target population of the study was employees in EPZ companies in Athi River, Kenya with large employees enrolled in active trade unions. The unit of observation was the employees in the trade unions. The findings indicated that collective bargaining agreements had a positive and significant coefficient with employees’ welfare at the EPZ industries. Industrial action had a positive but non-significant effect with employees’ welfare at Export Processing Zones industries. Dispute resolution had a positive and significant coefficient with employees’ welfare at the EPZ industries. Trade union representation had a positive and significant coefficient with employees’ welfare at the EPZ industries. The study recommended that trade union should avoid the path of confrontation but continue dialogue through the collective bargaining process and demands should be realistic in nature with what is obtainable in the related industry. An existence of a formal two way communication between management and trade unions will ensure that right message is properly understood and on time too. Keywords: Collective Bargaining Agreements, Industrial Action, Dispute Resolution, Trade Union Representation, Employees Welfare & Export Processing Zones

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“…All the aforementioned reassessments conjoin once corporate activity is examined in its spatial expression. We need to link the discussions on corporate financialization to those on globalized production in order to not lose sight of the “appearances” and “essences” of financialization (Powell, 2018). In empirical terms, this means reflecting on most studies' methodological nationalism, implying that either countries or corporations are treated in relative isolation (Fiebiger, 2016).…”

Section: Reassessing Corporate Financializationmentioning

confidence: 99%

Whither corporate financialization? A literature review

2021

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In this paper, we review the burgeoning literature on the study of corporate financialization, distinguishing three strands of empirical, quantitative studies: (1) national-level and macro-comparative analysis, (2) sector-and firm-level analysis, and (3) econometric studies. We argue that corporations should be studied in their spatial organization.The spatial organization of the firm can be used to obscure corporate activity. Geography is not simply one of the many features of corporate structure but is key to it and therefore fundamental to shaping corporate financialization, although this is insufficiently expressed in accounting principles that provide consolidated accounts. Finally, we suggest four avenues for future studies: (1) to expand the geographical and temporal scope of research; (2) to pay close attention to how indicators are constructed; (3) to deconstruct large categories of analysis, such as 'financial assets'; (4) to systematically include liabilities in the analysis of non-financial corporations, especially in the face of the abundance of credit.

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Towards a Marxist Theory of Financialized Capitalism

Cited by 7 publications

References 61 publications

Subordinate Financialization in Emerging Capitalist Economies

Subordinate Financialization in Emerging Capitalist Economies

Whither corporate financialization? A literature review

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