This chapter sets out the contradictory and variegated nature of financialization in emerging capitalist economies (ECEs), by placing particular emphasis on the changing financing and investment behaviour of non-financial corporations (NFCs). Based on a symbiotic understanding of the relationship between the ‘real’ and the financial, it argues that financialization processes in these countries have to be seen as dynamic ones, which are shaped by and interact with the specific capital accumulation process and institutional features of each country. It maintains that financialization in ECEs is closely related to and intensified with their integration into the world economy. However, the implications of this integration manifested themselves in contradictory ways. On the one hand, the increased articulation with domestic and international financial markets has created new opportunities for capitalists which have allowed them to expand their business and supported capital accumulation. On the other hand, these processes have brought new risks and historically novel financial needs, which have distracted from real investment and led to the restructuring of production. This includes the considerable contagion from the international financial crisis of 2008. Although emanating from core capitalist economies, this crisis had severe repercussion on ECEs, depending on their degree of international integration and financialisation. To contextualize these points, the chapter discusses the changing asset and liability structures of NFCs, as agents constituting the main link between financial system changes and capital accumulation and reflecting structural changes in capitalism.
Annina Kaltenbrunner and Elif Karacimen
Serdal Bahçe, Hasan Cömert, Nilgün Erdem, Elif Karaçimen, Ahmet Haşim Köse and Özgür Orhangazi
This study aims to evaluate the relationship between the real sector and the financial sector in the era of neoliberalism. To this end, we focus on the implications of financial developments for the main macroeconomic variables, including consumption, investment and income distribution. We also explore the impacts of the recent crisis on Turkish economy and the policies taken in response to the crisis. The overall findings of this report provide considerable support to four interrelated arguments. First, many well established properties of financialisation in advanced countries are not found in the Turkish case. Second, as opposed to domestically driven financialisation tendencies, financial flows, a part of global financialisation, have dominated important trends in the Turkish economy. Third, under the significant influence of financial flows, in general, the Turkish economy has shown a debt-led consumption boom type growth. Fourth, although the role of the export shock in explaining the impact of the recent crisis on the Turkish economy is very distinctive, the role of financial flows in the recent and especially previous crises are very important as well.