State Financialization: A Multi-Scalar Perspective

34 Pages Posted: 1 May 2018

See all articles by Reijer Hendrikse

Reijer Hendrikse

Vrije Universiteit Brussel (VUB)

Andrea Lagna

Loughborough University - School of Business and Economics

Date Written: August 1, 2017

Abstract

States in advanced economies both shaped and were influenced by financialization, that is the expansion of market-based and risk-oriented finance into non-financial realms. We put forward ‘state financialization’ as a notion that captures the transformation of core state functions vis-à-vis financialization. For analytical purposes, we categorize this phenomenon along three intertwined dimensions. First, internal state financialization refers to the market-oriented transformation of state functions that was accompanied by the transfer of authority to the subnational level. Second, external state financialization denotes the market-oriented reshaping of state functions that co-existed with the transfer of authority to the supranational level. Third, executive state financialization describes the pro-market restructuring of central state functions. Our study contributes to the financialization debate by advancing the research agenda on the state-financialization nexus. We do so through a multi-scalar perspective that accounts for the spatial organization of state institutions and social relations.

Keywords: financialization, state, market-based finance, multi-scalar relations, neoliberalism

JEL Classification: F50, F65

Suggested Citation

Hendrikse, Reijer and Lagna, Andrea, State Financialization: A Multi-Scalar Perspective (August 1, 2017). Available at SSRN: https://ssrn.com/abstract=3170943 or http://dx.doi.org/10.2139/ssrn.3170943

Reijer Hendrikse

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

Andrea Lagna (Contact Author)

Loughborough University - School of Business and Economics ( email )

Epinal Way
Leics LE11 3TU
Loughborough, Leicestershire LE11 3TU
United Kingdom

HOME PAGE: http://www.lboro.ac.uk/departments/sbe/staff/andrea-lagna/

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