Repository logo
 
Publication

Financialisation and real investment in the European Union: beneficial or prejudicial effects?

dc.contributor.authorBarradas, Ricardo
dc.date.accessioned2018-02-22T12:10:04Z
dc.date.available2018-02-22T12:10:04Z
dc.date.issued2017-07-21
dc.descriptionArtigo em revista científica internacional com arbitragem científicapt_PT
dc.description.abstractThis article presents an empirical analysis of the relationship between financialisation and real investment for non-financial corporations using panel data composed of 27 European Union countries over 19 years (1995 to 2013). On the one hand, financialisation leads to a rise in financial investments, diverting funds from real investments (‘crowding out’ effect); on the other, pressures from shareholders to intensify financial payments restrict the funds available for new real investments. We estimate an aggregate investment equation with the traditional variables (lagged investment, profitability, debt, cost of capital, corporate savings and output growth) and two further measures of financialisation (financial receipts and financial payments). The findings demonstrate that financialisation has damaged real investment in European Union countries, mainly through the channel of financial payments, either by interest or dividend payments. It is also found that the prejudicial effects of financialisation on investment were more severe in the pre-2007 crisis period. It is concluded that financialisation contributed to a slowdown of real investment by 1 to 8 per cent in the full and pre-crisis period, respectively. During the pre-crisis period, financialisation was the main driver of the slowdown of investment in the European Union.pt_PT
dc.description.versioninfo:eu-repo/semantics/publishedVersionpt_PT
dc.identifier.doi0953-8259pt_PT
dc.identifier.issn0953-8259
dc.identifier.urihttps://ciencia.iscte-iul.pt/id/ci-pub-38145
dc.identifier.urihttp://hdl.handle.net/10400.21/8099
dc.language.isoengpt_PT
dc.peerreviewedyespt_PT
dc.publisherRoutledgept_PT
dc.relation.ispartofseries3;
dc.relation.publisherversionhttp://www.tandfonline.com/doi/pdf/10.1080/09538259.2017.1348574?needAccess=truept_PT
dc.subjectFinancialisationpt_PT
dc.subjectInvestmentpt_PT
dc.subjectEuropean Unionpt_PT
dc.subjectPanel datapt_PT
dc.subjectLeast squares dummy variable bias corrected estimatorpt_PT
dc.titleFinancialisation and real investment in the European Union: beneficial or prejudicial effects?pt_PT
dc.typejournal article
dspace.entity.typePublication
oaire.citation.conferencePlaceAfeganistãopt_PT
oaire.citation.endPage413pt_PT
oaire.citation.startPage376pt_PT
oaire.citation.titleReview of Political Economypt_PT
oaire.citation.volume29pt_PT
person.familyNameBarradas
person.givenNameRicardo
person.identifier.ciencia-id061D-E6BF-503D
person.identifier.orcid0000-0003-0212-3568
person.identifier.scopus-author-id57131382000
rcaap.rightsrestrictedAccesspt_PT
rcaap.typearticlept_PT
relation.isAuthorOfPublicationc0fa42ef-438a-4757-b835-19de30af5ed6
relation.isAuthorOfPublication.latestForDiscoveryc0fa42ef-438a-4757-b835-19de30af5ed6

Files

Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Financialisation_RBarradas.pdf
Size:
4.46 MB
Format:
Adobe Portable Document Format
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:

Collections