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US Fiscal Policy, Manufacturing Stagnation, and the Shift to Financialization in the Era of Globalization

An Econometric Analysis, 1973–2015

Dados Bibliográficos

ID12229331
AutoresShaukat Ansari (University of Toronto, Toronto, Canada, autor correspondente)
Ano2018
Volume30
Fascículo4
Páginas595-614
Data de publicação2018-09-03
Peer ReviewedSim
Open AccessNão
TipoARTICLE
PeriódicoReview of Political Economy (JOURNAL)
Identificadores do periódicoISSN: 0953-8259 • E-ISSN: 1465-3982
EditoraTaylor & Francis (PUBLISHER • GB)
DOI10.1080/09538259.2018.1504388
OpenAlexW2889707252
IdiomaEN
Citações recebidas3
Referências citadas50

Financialization can be partially attributed to the decline in the US manufacturing profit rate since the 1970s. However, scholars have not reached a consensus regarding the factors responsible for stagnation in manufacturing. This paper employs an Auto-regressive Distributed Lag (ARDL) model to test the impact of both national defense and government consumption expenditure on manufacturing profitability in the United States from 1973, the onset of stagnation, to 2015. Its goal is two-fold: to determine whether stagnation is associated with a decline in Keynesian policies, and to examine the potential for state fiscal programs to reverse this trend and facilitate a shift of private investment away from the financial sector and into manufacturing. The paper finds that the impact of government consumption expenditure on the manufacturing profit rate is positive and significant in both the short-term and long-term (from 1973–2015 and 1973–1993), while the long-term impact becomes negative from 1983 to 2015, when the financial sector profit rate began its upward trend. This casts doubt on whether Keynesian fiscal policies could be employed to restore a healthy profit rate in the manufacturing sector and lower unemployment

Economic stagnation · Economics · Financialization · Fiscal policy · Globalization · Macroeconomics · Market economy · Monetary economics · Politics · Profitability index · Economic Theory and Policy · Housing, Finance, and Neoliberalism · Political and Economic history of UK and US · Finance

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Obras citantes distintas3
Citações por ano1,5
Intervalo de citações2024 - 2026 (3)
Velocidade de citaçãocurrent
Altamente citadoNão
Tipos de citaçãoNeutras: 3
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