{"title":"Financialization and Militarization: An Empirical Investigation","authors":"Pelin Akçagün-Narin, A. Elveren","doi":"10.1177/04866134231167204","DOIUrl":null,"url":null,"abstract":"Based on Arrighi, we empirically investigate whether financialization and militarization are mutually reinforcing phenomena in the United States. Military spending during the 1950–1960s in the United States counteracted the stagnation of the monopolistic stage of capitalism. Monopoly capital was transformed into finance monopoly capital as the intensity of financial capital increased during the late 1970s in response to stagnation. Considering alternative financialization variables and the profit rate in the financial sector, and using several parametric and nonparametric methods, we found a significant relationship between financialization and militarization in the United States for 1949–2019. The results suggest that the rise in financialization is parallel to the decline in the profit rates, leading to larger military expenditure in total, but with relatively smaller share in GDP. JEL Classification: C14, E11, G32","PeriodicalId":46719,"journal":{"name":"Review of Radical Political Economics","volume":"18 1","pages":""},"PeriodicalIF":1.0000,"publicationDate":"2023-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Review of Radical Political Economics","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.1177/04866134231167204","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Based on Arrighi, we empirically investigate whether financialization and militarization are mutually reinforcing phenomena in the United States. Military spending during the 1950–1960s in the United States counteracted the stagnation of the monopolistic stage of capitalism. Monopoly capital was transformed into finance monopoly capital as the intensity of financial capital increased during the late 1970s in response to stagnation. Considering alternative financialization variables and the profit rate in the financial sector, and using several parametric and nonparametric methods, we found a significant relationship between financialization and militarization in the United States for 1949–2019. The results suggest that the rise in financialization is parallel to the decline in the profit rates, leading to larger military expenditure in total, but with relatively smaller share in GDP. JEL Classification: C14, E11, G32
期刊介绍:
The Review of Radical Political Economics (RRPE) promotes critical inquiry into all areas of economic, social, and political reality. As the journal of the Union for Radical Political Economics, RRPE publishes innovative research in political economy broadly defined including, but not confined to, Marxian economies, post-Keynesian economics, Sraffian economics, feminist economics, and radical institutional economics. We are actively seeking submissions concerned with policy, history of thought, and economics and the environment. RRPE reflects an interdisciplinary approach to the study, development, and application of radical political economic analysis to social problems.