IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v30y2018i2p126-153.html
   My bibliography  Save this article

The Profit–Investment Nexus in an Era of Financialisation, Globalisation and Monopolisation: A Profit-Centred Perspective

Author

Listed:
  • Cédric Durand
  • Maxime Gueuder

Abstract

During recent decades, the link between profits and domestic investment has weakened in the largest high-income economies. In this article, we explore this attenuation of the profit–investment nexus through a profit-centred perspective. Focusing on the impact of the origins and uses of profits, we study the investment behaviour of non-financial corporations in relation to their profits at the macro level since 1970, a period marked by financialisation, globalisation and, more recently, monopolisation. We contrast and discuss four competing hypothese—the revenge of the rentiers, the financial turn of accumulation, globalisation and monopolisation—and related stylised facts for France, Germany, Japan, the United Kingdom and the United States.

Suggested Citation

  • Cédric Durand & Maxime Gueuder, 2018. "The Profit–Investment Nexus in an Era of Financialisation, Globalisation and Monopolisation: A Profit-Centred Perspective," Review of Political Economy, Taylor & Francis Journals, vol. 30(2), pages 126-153, April.
    • Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:126-153
    DOI: 10.1080/09538259.2018.1457211
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09538259.2018.1457211
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538259.2018.1457211?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Villani, Davide, 2021. "Revisiting the external financial dependence index in light of the rise of corporate net lending: What do we really measure?," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 361-376.
    2. Joel Rabinovich & Niall Reddy, 2024. "Corporate Financialization: A Conceptual Clarification and Critical Review of the Literature," Working Papers PKWP2402, Post Keynesian Economics Society (PKES).
    3. Ergen, Timur & Kohl, Sebastian & Braun, Benjamin, 2021. "Firm foundations: The statistical footprint of multinational corporations as a problem for political economy," MPIfG Discussion Paper 21/5, Max Planck Institute for the Study of Societies.
    4. Feiner Solís, Sara, 2021. "The effectiveness and risks of loose monetary policy under financialisation," IPE Working Papers 159/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    5. Baines, Joseph & Hager, Sandy Brian, 2023. "Rentiership and Intellectual Monopoly in Contemporary Capitalism: Conceptual Challenges and Empirical Possibilities," EconStor Preprints 270981, ZBW - Leibniz Information Centre for Economics.
    6. Tristan Auvray & Cédric Durand & Joel Rabinovich & Cecilia Rikap, 2021. "Corporate financialization’s conservation and transformation: from Mark I to Mark II," Review of Evolutionary Political Economy, Springer, vol. 2(3), pages 431-457, December.
    7. repec:hal:cepnwp:hal-03079425 is not listed on IDEAS
    8. Zachary Knauss, 2024. "Exploring the Profit-Investment Puzzle: A Post-Keynesian Analysis of Market Concentration and Stagnation," Working Papers 2409, New School for Social Research, Department of Economics.
    9. Tristan Auvray & Cédric Durand & Joel Rabinovich & Cecilia Rikap, 2020. "Financialization's conservation and transformation: from Mark I to Mark II," Working Papers hal-03079425, HAL.
    10. Reddy, Niall, 2024. "“Downsize And Distribute” Or “Merge And Monopolize”? A Critique Of Corporate Financialization Theories," SocArXiv 2zy5h, Center for Open Science.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:126-153. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.