 Financialisation and corporate investments: the Indian caseSunanda Sen and
Zico Dasgupta
Review of Keynesian Economics, 2018, vol. 6, issue 1, 96-113 Abstract: Financialisation creates space for transactions in the financial sector of economies, and, in doing so, helps to raise the share of financial assets in the portfolios held by market participants. Largely driven by deregulation, the process works to make financial assets relatively attractive as compared to other assets, by offering both better returns and potential capital gains. Against the backdrop of the prevailing analysis of corporate investments under financialisation in the advanced economies, this paper attempts to analyse the pattern of investment by corporates in an emerging economy like India during the 2000s. By analysing the sources and the use of funds of India's corporate sector in further detail, this paper highlights a similar phenomenon of financialisation in the Indian economy which, ceteris paribus, adversely affected real investments during the 2000s along with a process of Ponzi financing during the post-crisis period. Keywords: corporate investments; financialisation; Ponzi finance; speculation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:6:y:2018:i:1:p96-113 Access Statistics for this article Review of Keynesian Economics is currently edited by Thomas Palley, MatÃas Vernengo and Esteban Pérez Caldentey More articles in Review of Keynesian Economics from Edward Elgar Publishing |
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