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The dark side of finance: the link between financialisation and labour investment in emerging Asian countries

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  • Ömer Tuğsal Doruk

    (Adana Alparslan Türkeş Science and Technology University
    GLO Fellow, GLO)

Abstract

This study explores the effect of financialisation on labour investment for emerging Asian economies. Focusing on firms operating in non-financial sectors, this study explores the financialisation–labour investment relationship for Hong Kong, South Korea, Taiwan, Indonesia, Malaysia, and India during the period from 1999 to 2023. This study employs a panel regression methodology to explore the link between financialisation and labour investment. The findings indicate that financialisation can exert a negative influence on the labour investment of manufacturing firms in these emerging Asian economies. The findings of the study are also not sensitive to different robustness checks. This paper sheds new lights on the effects of financialisation on labour investment within emerging economies.

Suggested Citation

  • Ömer Tuğsal Doruk, 2024. "The dark side of finance: the link between financialisation and labour investment in emerging Asian countries," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-20, December.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:6:d:10.1007_s10644-024-09809-4
    DOI: 10.1007/s10644-024-09809-4
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    More about this item

    Keywords

    Labour investment; Financialisation; Emerging Asian countries; Manufacturing firms; Panel data analysis;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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