The growing dichotomy between real and financial sectors

Smita Roy Trivedi

MPRA Paper from University Library of Munich, Germany

Abstract: The paper contends that the economic growth process around the world has seen a growing dichotomy between real and financial sectors in the last four decades. There has been a marked stagnation in the real sector with falling growth and productivity levels, worsening physical investment and employment growth and dwindling saving rates. In contrast, the financial sector has seen a huge appreciation in financial assets and growing income from ownership of financial capital. The paper highlights the paradoxical coexistence of real sector stagnation with financial sector explosion.

Keywords: Real sector stagnation; Financial sector dominance; Economic crisis (search for similar items in EconPapers)
JEL-codes: E44 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:41421

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