Industry-level financialization trajectories vary far more than macroeconomic accounts showed
Evidence
Figure 2 shows that there is a signiļ¬cant industrial variance with regard to the trajectory of ļ¬nancialization, a pattern that was not identiļ¬ed in earlier macroeconomic accounts of ļ¬nancialization Ć°e.g., Crotty 2003; Krippner 2011Ć. Industries that had the greatest ļ¬nancialization growth between 1970 and 1997 were tobacco, motor vehicle, oil and gas extraction, and communications, followed by electrical and electronic, stone, clay, and glass, and chemical products. In this period, almost all industries showed a growth in their dependence on ļ¬nancial income. In the second period, ļ¬rms in some industries such as electrical equipment and products demonstrated rapid growth in their reliance on ļ¬nancial income, while other industries such as printing and publishing, broadcasting and telecommunication, waste management, and petroleum and coal products showed gradual decline. ā Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Incomeā¦, 67
Categorization
- XREF: Directly qualifies the aggregate financialization picture in Krippner 2005/2011 and Crotty 2003 that the reader already holds; the industry-disaggregation angle is worth integrating. ā connects to: Financialization trajectories diverged across industries after 1997 ā Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Incomeā¦, 165; Financialization does not yield uniform convergence across national contexts. ā Gerald F. Davis & Suntae Kim, Financialization of the Economy, 118
- QUESTION: Why tobacco, motor vehicles, oil and gas first? A sectoral political-economy breakdown of which nonfinance firms led financialization could be an article-seeding question.
Related
- Financialization trajectories diverged across industries after 1997 (similarity 0.89)
- Financialization comprises both finance-sector dominance and nonfinance firmsā financial investing. (similarity 0.83)
- Financialization is measured as the ratio of financial receipts to business receipts. (similarity 0.81)
- Nonfinance firms increasingly derived income from financial markets (similarity 0.81)
- Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.81)
- The US economy became increasingly financialized in the post-1970s period. (similarity 0.81)
- Financialization must be measured by profit generation, not employment or output (similarity 0.81)
- The US financial industry grew fastest, while other advanced economies plateaued. (similarity 0.80)
- Financialization does not measurably raise firm profits or financial-asset productivity. (similarity 0.79)
- Measuring profits rather than employment reveals financialization as the dominant economic trend (similarity 0.78)
Broader Connections
- Financialization trajectories diverged across industries after 1997
#corroborates(0.92) ā Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Incomeā¦, 165 - Financialization does not yield uniform convergence across national contexts.
#expands(0.85) ā Gerald F. Davis & Suntae Kim, Financialization of the Economy, 118