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Barradas, R. & Lagoa, S. (2017). Financialization and Portuguese real investment: a supportive or disruptive relationship?. Journal of Post Keynesian Economics. 40 (3), 413-439
R. P. Barradas and S. M. Lagoa, "Financialization and Portuguese real investment: a supportive or disruptive relationship?", in Journal of Post Keynesian Economics, vol. 40, no. 3, pp. 413-439, 2017
@article{barradas2017_1716087673648, author = "Barradas, R. and Lagoa, S.", title = "Financialization and Portuguese real investment: a supportive or disruptive relationship?", journal = "Journal of Post Keynesian Economics", year = "2017", volume = "40", number = "3", doi = "10.1080/01603477.2017.1286940", pages = "413-439", url = "http://www.tandfonline.com/doi/full/10.1080/01603477.2017.1286940" }
TY - JOUR TI - Financialization and Portuguese real investment: a supportive or disruptive relationship? T2 - Journal of Post Keynesian Economics VL - 40 IS - 3 AU - Barradas, R. AU - Lagoa, S. PY - 2017 SP - 413-439 SN - 0160-3477 DO - 10.1080/01603477.2017.1286940 UR - http://www.tandfonline.com/doi/full/10.1080/01603477.2017.1286940 AB - The article makes an empirical analysis of the relationship between financialization and real investment by Portuguese nonfinancial corporations from 1979 to 2013. In theory, while financialization leads to a rise in financial investments by nonfinancial corporations and thus deviates funds from real investment, it also intensifies the pressure for financial payments and therefore restricts the funds available for real investment. We estimate an aggregate investment function including control variables (profitability, debt, cost of capital and output growth) and two measures of financialization (financial receipts and financial payments). The study concludes that there is a long-term investment equation, and finds evidence that the process of financialization has hampered real investment largely as a result of financial payments. The article also finds that profitability and debt are both detrimental to real investment. ER -