FINANCIALIZATION AND STAGNANT CAPITAL ACCUMULATION IN CHINA

Authors

Guanchun Liu, Shanghai University, ChinaFollow
Chien-Chiang Lee, National Sun Yat-sen University, TaiwanFollow

Document Type

Article

Abstract

Using the semi-annual data of listed nonfinancial corporations from 2007 to 2015, this paper investigates the effect of financialization on capital accumulation in China. The results show that increased financial profit crowds out real investment, especially for small and private firms. Furthermore, the effect of financialization reverts to be positive in the long run, and its cumulative effect manifests a “U-type” pattern.

Recommended Citation

Liu, Guanchun and Lee, Chien-Chiang (2018) "FINANCIALIZATION AND STAGNANT CAPITAL ACCUMULATION IN CHINA," Bulletin of Monetary Economics and Banking: Vol. 21: No. 1, Article 2.
DOI: https://doi.org/10.21098/bemp.v21i1.941
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss1/2

First Page

23

Last Page

32

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

China

Affiliation

Shanghai University