Shifting Sources and Uses of Profits

William Milberg
Written By SCEPA

WORKING PAPER

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This paper explores the interdependence of the processes of the globalization of production and financialization, to link the issue of corporate governance to supply-chain governance.

The author finds that the globalization of production by U.S. firms has helped to sustain higher levels of financialization of the U.S. non-financial corporate sector and financialization creates greater incentives for cost-reducing and flexibility-enhancing globalized production by U.S. lead firms.

SCEPA
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