Munich Personal RePEc Archive

The growing dichotomy between real and financial sectors

Roy Trivedi, Smita (2011): The growing dichotomy between real and financial sectors. Published in: Matrix Business Review , Vol. 1, No. 2 : pp. 27-38.

[img]
Preview
PDF
MPRA_paper_41421.pdf

Download (299kB) | Preview

Abstract

The paper contends that the economic growth process around the world has seen a growing dichotomy between real and financial sectors in the last four decades. There has been a marked stagnation in the real sector with falling growth and productivity levels, worsening physical investment and employment growth and dwindling saving rates. In contrast, the financial sector has seen a huge appreciation in financial assets and growing income from ownership of financial capital. The paper highlights the paradoxical coexistence of real sector stagnation with financial sector explosion.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.