THE FINANCIALIZATION PROCESS AND ITS EFFECTS ON THE MEXICAN PRODUCTIVE SECTOR (1990-2016)

Main Article Content

Javier Lapa

Keywords

Financialization, bank credit, productive investment, finacial liberalization

Abstract

The process of economic financialization is defined as a stage of the capitalist system in which the profits obtained through financial channels acquire a growing importance, regarding to those related to production and distribution. The effects of this process are not limited to the financial sector, they also impact the productive one, at a macro and micro-economic level.In this sense, the Mexican Financial System (SFM) has gone through reforms arising from the adoption of a neoliberal growth model; according to which that financial liberalization contributes to the strengthening of both the financial and productive sector, creating a positive relationship among them.


With the objective of evaluating, if this has materialized in the case of the Mexican economy,in this work is carried out; on one hand, a descriptive statistical analysis on the evolution of the financing granted to the productive sector; and on the other hand, an econometric analysis through a panel data model, relating to the plant investment; to identify the effects of such process, in the levels of productive reinvestment. That is, through the analysis of the two main links between the sectors involved, the implied risks of the process of financialization are showed, for a developing economy as the Mexican.

Abstract 19 | PDF Downloads 16

References

1. Aglietta, M. (2000) Shareholder Value and Corporate Governance: Some Tricky Questions.Economy and Society, 29.París, Francia.pp. 146-159, https://doi.org/10.1080/030851400360596
2. Aglietta&Breton, R. (2001) Financial systems, corporate control and capital accumulation.Economy and Society, 30.París, Francia. pp. 433-466, https://doi.org/10.1080/03085140120089054
3. Arrighi, G. (1999) El largo siglo XX: dinero y poder en los orígenes de nuestra época. México. UNAM. Ediciones Akal.
4. Banco de México (severalyears) Estadísticas. Indicadores económicos, available inhttp:// www.banxico.org.mx/portal_disf/wwwProyectoInternetCaptacion_BM.jsp
5. Banerbeck, T. & Tarp, F. (2003) Financial Liberalization, Financial Development and Economic Growth in LDCs.Journal of International Development, 15.pp 189-209, https://doi.org/10.1002/jid.971
6. Caprio, G; Honohan, P;& Stiglitz, J. (2001) Financial Liberalization. How Far? How Fast?New York. USA., https://doi.org/10.1017/CBO9780511625886
7. Crotty, J. (2003) The Neoliberal Paradox: The Impact of Destructive Product Market, Competition and Impatient Finance on Nonfinancial Corporations in the Neoliberal Era.Review of Radical Political Economics, 35. 3. London. UK. Pp 271-279, https://doi.org/10.1177/0486613403255533
8. Duménil, G. & Lévy, D. (2004) Capital Resurgent. Roots of the Neoliberal Revolution. Massachusetts. USA. Harvard University Press.
9. Eatwell, J.& Taylor, L. (2000) Global Finance at Risk. Cambridge. Polity Press.
10. Economatica (several years) Statistics, available inhttps://economatica.com
11. Epstein, G. (2005) Financialization and the World Economy. London. UK. Ed. Edward Elgar Publishing.
12. Foster, J. (2007) Financialization of Capitalism. Monthly Review,No. 11.New York. USA.
13. Keynes, J. (2012) La teoría general de la ocupación, el interés y el dinero”. México. Ed. FCE (original publication 1936).
14. Kregel, J. (2009) ¿Cuál sería la estrategia alternativa al financiamiento del desarrollo en América Latina?”, in Girón, A. & Correa, E. (coords.)Asimetrías e Incertidumbre. México. Ed. Plaza y Valdés.
15. Krippner, G. (2005) The Financialization of the American Economy. Socio-Economic Review, 3, 2. Oxford University Press.pp 173-208, https://doi.org/10.1093/SER/mwi008
16. Lapavitsas, C. (2007) Financialised Capitalism: Expansion and Crisis. Madrid. España. Ed. Maia.
17. Lazonick, W. & O'Sullivan, M. (2000) Maximising shareholder value: a new ideology for corporate governance.Economic and Society, 29, 1.pp 13-35, https://doi.org/10.1080/030851400360541
18. Martínez, A. (2007) Economía política mundial. Las fuerzas estructurantes. Barcelona. España. Ed. Ariel.
19. McKinnon, R. (1973) Money and Capital in Economic Development. Washington. EUA. Brookings Institution Press.
20. Orhangazi, O. (2008) Financialization and the US Economy. Massachusetts. EUA. Edward Elgar Publishing., https://doi.org/10.4337/9781848440166
21. Palley, T. (2008)Financialization: What it is and Why it Matters. Working Paper No. 525. New York. USA. The Levy Economics Institute.
22. Ponssard, J. (2002) Monteé en pissance des fondsd´investissement. Quelsenjeux pour les entreprises?París, France.
23. Prebisch, R. (1962) The Economic Development of Latin America and its principal problems. Economic Bulletin for Latin America. VII, 1. Santiago, Chile. UNECLA.pp 1-23
24. Reinet, E. (2004) How rich nations got rich: Essays in the History of Economic Policy. Oslo. Norway.
25. Ryoo, S. &Skott, P. (2008) Financialization in Kaleckian economies with and without labor constraints. Massachusetts. EUA.
26. Shaw, E. (1973) Financial Deepening in Economic Development. New York, EUA. Oxford University Press.
27. Stockhammer, E. (2004) Financialization and the Slowdown of Accumulation. Journal of Economics No. 28. Cambridge. EUA. pp 719-741, https://doi.org/10.1093/cje/beh032
28. Stockhammer, E. (2009)The finance-dominated growth regime, distribution, and the present crisis. WorkingPaper Series, 127. Vienna. University of Economics. pp 58-81
29. Sweezy P. (1994) The triumph of financial capital. Monthly Review, 46, 2.pp 1-11, https://doi.org/10.14452/MR-046-02-1994-06_1
30. Williamson, J. &Mahar, M. (1998). A Survey of Financial Liberalization. Princeton Essays in International Finance, 21.pp 1-65
31. Xu, Z. (2000) Financial Development, investement and economic growth. Economic Inquiry, 38, 2.pp 331-344, https://doi.org/10.1111/j.1465-7295.2000.tb00021.x