The process of financialisation in the world economy: Unravelling the dynamics and crisis nexus

Maria Dafnomili

Research output: Types of ThesisDoctoral ThesisInternal

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Abstract

Over the past four decades, financialisation has become a dominant force in shaping the global economy, influencing growth patterns and contributing to economic crises. This thesis investigates the relationship between financialisation, growth volatility, and economic development, combining theoretical and empirical analysis to understand its far-reaching impact. The theoretical framework comprises three core pillars. First, it explores capitalism's evolution and its role in fostering the widespread adoption of financialisation. Second, it examines financialisation's roots in neoliberalism, highlighting its theoretical and practical implications. Third, it considers the role of financial globalisation in accelerating financialisation's momentum. Together, these dimensions underscore financialisation's pervasive influence in contemporary economies. The empirical component categorises the literature into three perspectives: financialisation as a positive, negative, or threshold/neutral factor in growth volatility. Employing descriptive statistics and high-dimensional fixed-effects regression on a dataset of 183 countries, the research introduces a novel financialisation variable that enables a more nuanced analysis of the financial environment. The findings highlight financialisation’s critical role in driving growth volatility, particularly in low- and middle-income nations, where unregulated financialisation exacerbates economic instability. By integrating theoretical insights with empirical evidence, this research provides policymakers and scholars with valuable tools to manage financialisation’s risks and foster stable, sustainable economic growth.
Original languageEnglish
Awarding Institution
  • Erasmus University Rotterdam
  • ISS PhD
Supervisors/Advisors
  • van Staveren, Irene, Supervisor
  • Papyrakis, Elissaios, Co-supervisor
Award date27 Jan 2025
Place of PublicationDen Haag
Print ISBNs978-94-6473-682-3
Publication statusPublished - 27 Jan 2025

Research programs

  • ISS-DE

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