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Investment and rate of profit in a financial context: The French case

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  • Mickaël Clévenot

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)

  • Jacques Mazier

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - UP13 - Université Paris 13 - CNRS - Centre National de la Recherche Scientifique)

Abstract

The growth regime which prevailed in France since the middle of the 1980s is characterised by a recovery of profitability without durable resumption of growth or accumulation of productive capital. The financialization of this growth regime can be read in firms' balance sheet structure with rising shares of equities. Following a Post-Keynesian framework, the main determinants of capital accumulation and finance are analysed and tested at the level of non financial companies for France from flow of funds national accounts. The arbitration which seems to prevail between real and financial accumulation could contribute to explain the insufficient recovery of investment. Regarding firms' liability structure, two alternative approaches are considered, one in terms of indebtedness norm, the other in terms of arbitration between financing by debt and issuing shares.

Suggested Citation

  • Mickaël Clévenot & Jacques Mazier, 2005. "Investment and rate of profit in a financial context: The French case," Working Papers hal-00188616, HAL.
    • Handle: RePEc:hal:wpaper:hal-00188616
    Note: View the original document on HAL open archive server: https://hal.science/hal-00188616v1
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    References listed on IDEAS

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    1. Marc Lavoie & Wynne Godley, 2012. "Kaleckian Models of Growth in a Coherent Stock–Flow Monetary Framework: A Kaldorian View," Palgrave Macmillan Books, in: Marc Lavoie & Gennaro Zezza (ed.), The Stock-Flow Consistent Approach, chapter 6, pages 123-156, Palgrave Macmillan.
    2. Anne Epaulard, 1993. "L'apport du Q de Tobin à la modélisation de l'investissement en France," Économie et Prévision, Programme National Persée, vol. 109(3), pages 1-12.
    3. Philip Arestis, 2004. "Washington consensus and financial liberalization," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 27(2), pages 251-271.
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    Cited by:

    1. Yann Guy, 2010. "Industrial Major Firms Investments in a Financialized Context," Working Papers hal-00402021, HAL.

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