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

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.