Why do firms financialize? Meso-level evidence from the us apparel and footwear industry, 1991-2005

Research output: Contribution to journalArticle

Abstract

In recent decades, financialization has significantly restructured American capitalism. Social scientists have offered several accounts to explain financial markets' ascendance, but this work often portrays financialization as a totalizing force and is conducted within divergent theoretical paradigms-political economy and neo-institutionalism-with few attempts to bridge these differences. Accordingly, we risk talking past each other while failing to identify where financialization occurs. I address these issues with a unique panel data set, panel analysis and with a focus on identifying the meso-level determinants of financialization. I do so with a substantively important industry that exemplifies the global, flexible and competitive characteristics of neoliberal capitalism. I argue that the propensity to financialize rests significantly upon firms' productive roles, meaning we cannot understand financialization without understanding production-global production networks in particular. This is also a call for researchers to explore financialization's multifaceted character and to develop a more analytically rigorous research agenda.

Original languageEnglish (US)
Article numbermwv006
Pages (from-to)549-573
Number of pages25
JournalSocio-Economic Review
Volume13
Issue number3
DOIs
StatePublished - Jul 2015
Externally publishedYes

Keywords

  • Economic sociology
  • Financialization
  • Institutionalism
  • Political economy

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics, Econometrics and Finance(all)

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