IDEAS home Printed from https://ideas.repec.org/p/nct/wpaper/07-09.html
   My bibliography  Save this paper

The Expansion of the Finance Industry and Its Impact on the Economy: A Territorial Approach Based on Swiss Pension Funds

Author

Abstract

A new economic geography of finance is emerging, and the current "financialization" of contemporary economies has contributed greatly to the reshaping of the economic landscape. How can these changes be understood and interpreted, especially from a territorial point of view? There are two contradictory economic theories regarding the tangible effects of the rise of the finance industry. According to neoclassical financial theorists, the finance industry's success is based on its positive effects on the real economy through its capacity to allocate financial resources efficiently. An alternative approach, adopted here, posits that finance does not merely mirror the real economy and that the financial economy, far from being a simple instrument for the allocation of capital, has its own autonomy, its own logic of development and expansion. A series of complex, and sometimes contradictory, connections link financial markets and the real economy, and there are some tensions between them, calling into question the coherence of the regional and national economies that follow from them. Moreover, the territorial approach shows how the mobility/liquidity of capital and the changing dimensions of new regions and countries are central to the finance industry's functioning. This article builds an understanding of the financial system through the lens of pension funds and highlights the impact of such a system on the real economy and its geography.

Suggested Citation

  • José Corpataux & Olivier Crevoisier & Thierry Theurillat, 2009. "The Expansion of the Finance Industry and Its Impact on the Economy: A Territorial Approach Based on Swiss Pension Funds," GRET Publications and Working Papers 07-09, GRET Group of Research in Territorial Economy, University of Neuchâtel.
  • Handle: RePEc:nct:wpaper:07-09
    as

    Download full text from publisher

    File URL: http://onlinelibrary.wiley.com/doi/10.1111/j.1944-8287.2009.01035.x/full
    Download Restriction: file cannot be freely downloaded, thus you can download the document in open access below

    File URL: http://doc.rero.ch/lm.php?url=1000,43,4,20090904173439-LZ/Corpataux_Jos_-_The_Expansion_of_the_Finance_Industry_20090904.pdf
    Download Restriction: no

    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:

    References listed on IDEAS

    as
    1. Olivier Crevoisier & Frédéric Quiquerez, 2005. "Inter-regional corporate ownership and regional autonomy: the case of Switzerland," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(4), pages 663-689, December.
    2. Ewald Engelen, 2003. "The logic of funding European pension restructuring and the dangers of financialisation," Environment and Planning A, Pion Ltd, London, vol. 35(8), pages 1357-1372, August.
    3. Thierry Theurillat & José Corpataux & Olivier Crevoisier, 2008. "The Impact of Institutional Investors on Corporate Governance: A View of Swiss Pension Funds in a Changing Financial Environment," GRET Publications and Working Papers 12-08, GRET Group of Research in Territorial Economy, University of Neuchâtel.
    4. Ewald Engelen, 2006. "Resocializing Capital: Putting Pension Savings in the Service of “Financial Pluralism†?," Politics & Society, , vol. 34(2), pages 187-218, June.
    5. Ron Martin & Christian Berndt & Britta Klagge & Peter Sunley, 2005. "Spatial proximity effects and regional equity gaps in the venture capital market: evidence from Germany and the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 37(7), pages 1207-1231, July.
    6. Frank Moulaert & Farid Sekia, 2003. "Territorial Innovation Models: A Critical Survey," Regional Studies, Taylor & Francis Journals, vol. 37(3), pages 289-302.
    7. Clark, Gordon L., 2003. "European Pensions & Global Finance," OUP Catalogue, Oxford University Press, number 9780199253647.
    8. Jane S. Pollard, 2003. "Small firm finance and economic geography," Journal of Economic Geography, Oxford University Press, vol. 3(4), pages 429-452, October.
    9. Britta Klagge & Ron Martin, 2005. "Decentralized versus centralized financial systems: is there a case for local capital markets?," Journal of Economic Geography, Oxford University Press, vol. 5(4), pages 387-421, August.
    10. Ewald Engelen, 2003. "The Logic of Funding European Pension Restructuring and the Dangers of Financialisation," Environment and Planning A, , vol. 35(8), pages 1357-1372, August.
    11. Sheila Dow & Carlos Rodriguez-Fuentes, 1997. "Regional Finance: A Survey," Regional Studies, Taylor & Francis Journals, vol. 31(9), pages 903-920.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. repec:eee:respol:v:46:y:2017:i:7:p:1284-1298 is not listed on IDEAS
    2. Natacha Aveline-Dubach, 2014. "New Patterns of Property Investment in " Post-Bubble " Tokyo
      [Les nouvelles formes de l'investissement immobilier dans l'après-bulle à Tokyo]
      ," Post-Print halshs-01242564, HAL.
    3. Thierry Theurillat & Jose Corpataux & Olivier Crevoisier, 2008. "Property Sector Financialization: The Case of Swiss Pension Funds (1992--2005)," European Planning Studies, Taylor & Francis Journals, vol. 18(2), pages 189-212, December.
    4. Thierry Theurillat, 2011. "La ville négociée : entre financiarisation et durabilité," Géographie, économie, société, Lavoisier, vol. 13(3), pages 225-254.
    5. Ludovic Halbert & Hortense Rouanet, 2014. "Filtering Risk Away: Global Finance Capital, Transcalar Territorial Networks and the (Un)Making of City-Regions: An Analysis of Business Property Development in Bangalore, India," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 471-484, March.
    6. Alan Walks, 2014. "From Financialization to Sociospatial Polarization of the City? Evidence from Canada," Economic Geography, Clark University, vol. 90(1), pages 33-66, January.
    7. Thierry Theurillat & Olivier Crevoisier, 2013. "The Sustainability of a Financialized Urban Megaproject: The Case of Sihlcity in Zurich," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 37(6), pages 2052-2073, November.
    8. Christian Livi & Pedro Araujo & Olivier Crevoisier, 2012. "Les territoires de l'innovation "durable": des milieux locaux à la communication "responsable". Les cas du photovoltaïque et de la finance durable en Suisse occidentale," GRET Publications and Working Papers 05-12, GRET Group of Research in Territorial Economy, University of Neuchâtel.
    9. Christian Livi & Hugues Jeannerat & Olivier Crevoisier, 2013. "Mobility of Knowledge. The Photovoltaic Industry in Western Switzerland : The Emergence of a Multi-Local Valuation Milieu," GRET Publications and Working Papers 04-13, GRET Group of Research in Territorial Economy, University of Neuchâtel.

    More about this item

    Keywords

    Finance Industry; Territorial Economy; Swiss Pension Funds;

    JEL classification:

    • G0 - Financial Economics - - General
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L0 - Industrial Organization - - General
    • E0 - Macroeconomics and Monetary Economics - - General
    • A1 - General Economics and Teaching - - General Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    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:nct:wpaper:07-09. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain Paul Segessemann). General contact details of provider: http://edirc.repec.org/data/grenech.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.