FINANCIALIZATION AND STAGNANT CAPITAL ACCUMULATION IN CHINA
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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