Handbook of Critical Issues in Finance
Show Less

Handbook of Critical Issues in Finance

Edited by Jan Toporowski and Jo Michell

This vital new Handbook is an authoritative volume presenting key issues in finance that have been widely discussed in the financial markets but have been neglected in textbooks and the usual compilations of conventional academic wisdom.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 17: Financialization

Engelbert Stockhammer


Financialization is a term that summarizes a broad set of changes in the relation between the ‘financial’ and ‘real’ sector, which give greater weight to financial actors or motives. The term has been used to encompass phenomena as diverse as shareholder value orientation, increasing household debt, changing attitudes of individuals, increasing incomes from financial activities, increasing frequency of financial crises, and increasing international capital mobility. The debate on financialization covers contributions from different disciplines ranging from economics to sociology, history, political science and business studies and from different theoretical traditions (see Ertu_rk et al., 2008, for a useful collection of seminal contributions). One of the first prominent works to use the term financialization was Arrighi (1994) who identified long waves of economic development in global capitalism that involve hegemonic and geographic shifts. While the upswings of these long waves are characterized by increased manufacturing and trade activity, in the downturns a process of financialization occurs: the leading power had initially established a competitive advantage in terms of production, but it shifts towards financial activities as its growth model gets exhausted and other players catch up.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.