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


  • Cédric Durand

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

  • Maxime Gueuder

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


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.

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  • 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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    1. Se-Eun Jeong & Jacques Mazier & Jamel Saadaoui, 2010. "Exchange Rate Misalignments at World and European Levels: a FEER Approach," International Economics, CEPII research center, issue 121, pages 25-58.
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    10. John Williamson, 1994. "Estimating Equilibrium Exchange Rates," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 17.
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    13. Carton, Benjamin & Hervé, Karine, 2012. "Estimation of consistent multi-country FEERs," Economic Modelling, Elsevier, vol. 29(4), pages 1205-1214.
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    Profits; Investment; Financialisation; Globalisation; Macro-panel analysis;

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