The Rise of Rentier Capitalism and the Financialization of Real Sectors in Developing Countries

Firat Demir

Review of Radical Political Economics, 2007, vol. 39, issue 3, 351-359

Abstract: Using microlevel company panel data, the article analyzes the impacts of financial liberalization on real investment behavior under capital market imperfections, volatile macroprices, and changing country risk levels. The findings suggest that financial liberalization in developing countries has become instrumental in channeling real sector savings to speculative short-term investments instead of long-term investment projects and hence altering the pattern of capital accumulation in the real sectors of the economy.

Keywords: private investment; macroeconomic uncertainty; financial markets; financialization; low-growth traps (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:39:y:2007:i:3:p:351-359

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