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The financialisation–offshoring nexus and the capital accumulation of US non-financial firms

Auvray, T. and Rabinovich, J. ORCID: 0000-0002-9175-0848 (2019). The financialisation–offshoring nexus and the capital accumulation of US non-financial firms. Cambridge Journal of Economics, 43(5), pp. 1183-1218. doi: 10.1093/cje/bey058

Abstract

The financialisation of non-financial corporations has drawn the attention of many scholars who have identified two main channels through which financialisation occurs: a higher proportion of financial assets compared to non-financial ones and a higher amount of resources diverted to financial markets. A consequence of this process is a decrease in investment. Parallel to financialisation, many non-financial corporations have also engaged in an internationalisation of their productive activities, organising them under global value chains. Though offshoring may also explain the decrease in the level of investment of non-financial firms, the intersections between the literature on financialisation and the literature on global value chain remain surprisingly underdeveloped. This paper contributes to fill this gap using panel regressions for US non-financial corporations between 1995 and 2011. We find evidence that both offshoring and financialisation are determinants to the decrease in investment and that financialisation occurs mainly among firms belonging to sectors prone to offshoring.

Publication Type: Article
Additional Information: This is a pre-copyedited, author-produced version of an article accepted for publication in Cambridge Journal of Economics following peer review. The version of record Tristan Auvray, Joel Rabinovich, The financialisation–offshoring nexus and the capital accumulation of US non-financial firms, Cambridge Journal of Economics, Volume 43, Issue 5, September 2019, Pages 1183–1218, is available online at: https://doi.org/10.1093/cje/bey058
Publisher Keywords: financialisation of the non-financial corporation, global value chain, offshoring, investment
Subjects: H Social Sciences > HG Finance
Departments: School of Arts & Social Sciences > International Politics
Date available in CRO: 05 Nov 2021 15:09
Date deposited: 5 November 2021
Date of first online publication: 4 February 2019
URI: https://openaccess.city.ac.uk/id/eprint/27050
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