Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach

Detalhes bibliográficos
Autor(a) principal: Correia, Diogo
Data de Publicação: 2021
Outros Autores: Barradas, Ricardo
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10071/23593
Resumo: The aim of this paper is to conduct a time series econometric analysis in order to empirically evaluate the role of financialisation in the slowdown of labour productivity in Portugal during the period from 1980 to 2017. During that time, the Portuguese economy faced a financialisation phenomenon due to the European integration process and the corresponding imposition of a strong wave of privatisation, liberalisation and deregulation of the Portuguese financial system. At the same time, Portuguese labour productivity exhibited a sustained downward trend, which seems to contradict the well-entrenched mainstream hypothesis on the finance–productivity nexus. Based on the post-Keynesian literature, we identify four channels through which the phenomenon of financialisation has impaired labour productivity, namely weak economic performance, the fall in labour’s share of income, the rise of inequality in personal income and an intensification of the degree of financialisation. The paper finds that lagged labour productivity, economic performance and labour income share positively impact labour productivity in Portugal, while personal income inequality and the degree of financialisation negatively impact labour productivity in Portugal. The paper also finds that the main triggers for the slowdown of labour productivity in Portugal are the degree of financialisation and personal income inequality over the last decades.
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spelling Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approachPortugalLabour productivityFinancialisationTime seriesGeneralised method of momentsThe aim of this paper is to conduct a time series econometric analysis in order to empirically evaluate the role of financialisation in the slowdown of labour productivity in Portugal during the period from 1980 to 2017. During that time, the Portuguese economy faced a financialisation phenomenon due to the European integration process and the corresponding imposition of a strong wave of privatisation, liberalisation and deregulation of the Portuguese financial system. At the same time, Portuguese labour productivity exhibited a sustained downward trend, which seems to contradict the well-entrenched mainstream hypothesis on the finance–productivity nexus. Based on the post-Keynesian literature, we identify four channels through which the phenomenon of financialisation has impaired labour productivity, namely weak economic performance, the fall in labour’s share of income, the rise of inequality in personal income and an intensification of the degree of financialisation. The paper finds that lagged labour productivity, economic performance and labour income share positively impact labour productivity in Portugal, while personal income inequality and the degree of financialisation negatively impact labour productivity in Portugal. The paper also finds that the main triggers for the slowdown of labour productivity in Portugal are the degree of financialisation and personal income inequality over the last decades.DINÂMIA'CET-Iscte2021-11-26T15:10:16Z2021-11-01T00:00:00Z2021-11info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/23593eng10.15847/dinamiacet-iul.wp.2021.07Correia, DiogoBarradas, Ricardoinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:30:01Zoai:repositorio.iscte-iul.pt:10071/23593Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:13:28.516690Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
title Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
spellingShingle Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
Correia, Diogo
Portugal
Labour productivity
Financialisation
Time series
Generalised method of moments
title_short Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
title_full Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
title_fullStr Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
title_full_unstemmed Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
title_sort Financialisation and the slowdown of labour productivity in Portugal: A post-Keynesian approach
author Correia, Diogo
author_facet Correia, Diogo
Barradas, Ricardo
author_role author
author2 Barradas, Ricardo
author2_role author
dc.contributor.author.fl_str_mv Correia, Diogo
Barradas, Ricardo
dc.subject.por.fl_str_mv Portugal
Labour productivity
Financialisation
Time series
Generalised method of moments
topic Portugal
Labour productivity
Financialisation
Time series
Generalised method of moments
description The aim of this paper is to conduct a time series econometric analysis in order to empirically evaluate the role of financialisation in the slowdown of labour productivity in Portugal during the period from 1980 to 2017. During that time, the Portuguese economy faced a financialisation phenomenon due to the European integration process and the corresponding imposition of a strong wave of privatisation, liberalisation and deregulation of the Portuguese financial system. At the same time, Portuguese labour productivity exhibited a sustained downward trend, which seems to contradict the well-entrenched mainstream hypothesis on the finance–productivity nexus. Based on the post-Keynesian literature, we identify four channels through which the phenomenon of financialisation has impaired labour productivity, namely weak economic performance, the fall in labour’s share of income, the rise of inequality in personal income and an intensification of the degree of financialisation. The paper finds that lagged labour productivity, economic performance and labour income share positively impact labour productivity in Portugal, while personal income inequality and the degree of financialisation negatively impact labour productivity in Portugal. The paper also finds that the main triggers for the slowdown of labour productivity in Portugal are the degree of financialisation and personal income inequality over the last decades.
publishDate 2021
dc.date.none.fl_str_mv 2021-11-26T15:10:16Z
2021-11-01T00:00:00Z
2021-11
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