FINANCIALIZATION AND STAGNANT CAPITAL ACCUMULATION IN CHINA

  • Chien-Chiang Lee National Sun Yat-sen University
  • Guanchun Liu Shanghai University
Keywords: Financialization; Capital accumulation; Polynomial inverse lag; China

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.

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Published
2018-09-03
How to Cite
Lee, C.-C., & Liu, G. (2018). FINANCIALIZATION AND STAGNANT CAPITAL ACCUMULATION IN CHINA. Buletin Ekonomi Moneter Dan Perbankan, 21(1), 23-32. https://doi.org/10.21098/bemp.v21i1.941
Section
Articles