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The increasing dominance of finance starting in the late 1970s/early 1980s in the US and the UK, and somewhat later in other countries, was associated with two fundamental and structural processes generating the contradictions of this phase of development and finally the financial and economic...
Persistent link: https://www.econbiz.de/10011431645
We examine whether capital flows more to high Tobin's q industries and find that it flows more to high q industries from 1971 until 1996 but not from 1997 to 2014. This change is due to a decrease in the q-sensitivity of equity funding resulting mostly from the increased q-sensitivity of...
Persistent link: https://www.econbiz.de/10011969138
In this paper we present a theory of the financing of investment in a modern capitalist economy, following the approach … used to finance positions in assets is of critical importance, both for theory and for real-world outcomes. In the first … section we present the investment theory of the business cycle developed by John Maynard Keynes, and then examine Minsky …
Persistent link: https://www.econbiz.de/10003773512
investment through wide-ranging structural reforms. Areas that require reforms include the regulation of product and labour … institutions are particularly relevant, would stimulate private investment, facilitating the creation of new firms and jobs, and …
Persistent link: https://www.econbiz.de/10011823732
argue that there is much confusion about key macroeconomic concepts like saving, investment and finance. This confusion is … best summarised in the statement "saving finances investment". After clearly defining the accounting relationships between … lending, financial saving and physical investment it will be shown that this is a nonsense statement. The theory behind it …
Persistent link: https://www.econbiz.de/10009672542
demand, i.e. investment, consumption and net exports. Since increasing shareholder power and shareholder value orientation of … important result is the emergence of 'profits without investment' demand and growth regimes, for which we point out the … variants of 'profits without investment' demand and growth regimes in finance-dominated capitalism. We review the different …
Persistent link: https://www.econbiz.de/10014490639
This paper reviews the theoretical and empirical literature on links between domestic financial development and economic growth. It starts with the pioneers in this field and then classifies two main schools favouring liberal financial regimes. First McKinnon and Shaw advocated financial...
Persistent link: https://www.econbiz.de/10011335226
This paper mainly examines the effect of financial development on the recession, while controlling for potential recession factors. Using panel data of 129 countries spanning 1990-2010, we implemented "Locally Weighted Scatterplot Smoothing", "Local Linear" and "Iteratively Reweighted Least...
Persistent link: https://www.econbiz.de/10012221855
There is growing evidence that the impact of financial development on economic growth might be non-linear and hump-shaped, exhibiting a turning point. However, such findings are typically established using total finances (mostly: credit), and the apparent non-linear impact of totals can stem...
Persistent link: https://www.econbiz.de/10012054612
This paper examines the relationship between financial development, CO2 emissions, trade and economic growth using simultaneous-equation panel data models for a panel of 12 MENA countries over the period 1990-2011. Our results indicate that there is evidence of bidirectional causality between...
Persistent link: https://www.econbiz.de/10010488272