7 Financialisation of NFCs, globalisation and growth
Investment choices and investment theories
As we have several times highlighted, capital accumulation is one of the major movers of economic growth and ultimately depends on the share of social surplus devoted to investment. In capitalist economic systems, moreover, profits are the main part of social surplus on the income distribution side, and thus they are also the most prominent source of potential investment in new capital goods.
Unfortunately, as we have seen, in the past 50 years, the investment/profits ratio has shown a declining trend. And since the late 1980s, NFCs, while reducing their accumulation of capital goods, have progressively increased their ...
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