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The investment-profit nexus in an era of financialisation and globalisation. A marxist perspective

Author

Listed:
  • Cédric Durand

    (Centre d'Economie de l'Université de Paris Nord (CEPN))

  • Maxime Gueuder

    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

Abstract

During the past decades, the link between profits and domestic investment weakened in the biggest high-income economies. This contribution explores this relaxation of the profits-investment nexus in a Marxist profit-centred perspective. Focusing on the impact of the origins and the uses of profits, we study the investment behaviour of non-financial corporations in relation to their profits at the macro level since 1980, a period marked by financialisation and globalisation. We contrast three competing hypotheses – the Revenge of the Rentiers, the Financial-turn of Accumulation and Globalisation – and test them through a macro panel data analysis for France, Germany, Italy, Japan, United-Kingdom and United States over the period 1980-2012.

Suggested Citation

  • Cédric Durand & Maxime Gueuder, 2016. "The investment-profit nexus in an era of financialisation and globalisation. A marxist perspective," CEPN Working Papers 2016-01, Centre d'Economie de l'Université de Paris Nord.
    • Handle: RePEc:upn:wpaper:2016-01
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    File URL: https://cepn.univ-paris13.fr/download-attachment/7419/
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    Cited by:

    1. Joel Rabinovich, 2017. "The financialisation of the nonfinancial corporation. A critique to the financial rentieralization hypothesis," CEPN Working Papers 2017-22, Centre d'Economie de l'Université de Paris Nord.
    2. Bonizzi, Bruno & Kaltenbrunner, Annina & Powell, Jeffrey, 2019. "Subordinate financialization in emerging capitalist economies," Greenwich Papers in Political Economy 23044, University of Greenwich, Greenwich Political Economy Research Centre.

    More about this item

    Keywords

    Profits; Investment; Financialisation; Globalisation; Macro-panel analysis;
    All these keywords.

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