1. bookVolume 10 (2021): Issue 3 (June 2021)
    Humanistic Economy
Journal Details
License
Format
Journal
First Published
03 Oct 2014
Publication timeframe
4 times per year
Languages
English
access type Open Access

Financialization of Commodity Market

Published Online: 15 Jul 2021
Page range: 53 - 60
Journal Details
License
Format
Journal
First Published
03 Oct 2014
Publication timeframe
4 times per year
Languages
English
Abstract

The aim of the article is to present possible consequences caused by the development of commodity market financialization understood by the influence of financial investor’s speculation. Also the task of elaboration is to outline the existence of financial factors in the price creation process of commodities. The existing impact of financialization on the volatility of commodity prices significantly modifies the market. The results of the research and analyzes carried out indicate a similarity in the behavior of the markets of commodities. The situation results from the redistribution of the risk of financial investors who having a few goods in the investment portfolio, next to large transaction volumes affect the unification of price trends. Price shaping factors are being transformed. The decrease importance of supply or consumption in the context of the commodities market changes its form. The growing influence of investors who create numerous speculations transforms the market. Trade in futures contracts affects the level of commodities prices.

Keywords

1. Basak, S., and A. Pavlova. A Model of Financialization of Commodities, 2015, www.faculty.london.edu/apavlova/Commodities.pdf, accessed November 17, 2019. Search in Google Scholar

2. Battiston, S., M. Guerini, M. Napoletano, and V. Stolbovaa. Financialization in EU and the effects on growth, inequality and financial stability, 2018, https://www.isigrowth.eu/wp-content/uploads/2018/07/working_paper_2018_36.pdf, accessed November 7, 2019. Search in Google Scholar

3. Borcuch, A. Finansjalizacja gospodarstw domowych jako zewnętrzny efekt finansjalizacji gospodarki, https://www.coin.wne.uw.edu.pl/jgorski/eurozone/prezentacje/Dr_Borcuch.pdf, accessed July 4, 2019. Search in Google Scholar

4. Chari, V., and L. J. Christiano. Financialization in Commodity Markets, Working Paper (15) 2017, Federal Reserve Bank of Chicago, 2017. Search in Google Scholar

5. Chiaiel, S. D., L. Ferrara, and D. Giannone. Common Factors of Commodity Prices, Banque de France, 2017, pp. 13-19, https://www.banque-france.fr/sites/default/files/medias/documents/wp645.pdf, accessed October 18, 2019. Search in Google Scholar

6. Davis, G. F., and S. Kim. Financialization of the Economy, Ann Arbor, Michigan: The University of Michigan. Search in Google Scholar

7. Dembinski, S. H. Finanse po zawale, Warszawa: Studio Emka, 2011. Search in Google Scholar

8. Epstein, G. A. (ed.). Financialization and the World Economy, Edward Elgar Publishing Limited, Cheltenham, 2015. Search in Google Scholar

9. Falkowski, M. Financialization of commodities, Contemporary Economics 5 (4), 2011, pp. 4-17. Search in Google Scholar

10. Goldstein, I., and L. Yang. Commodity Financialization and Information Transmission, 2018, www.rady.ucsd.edu/docs/seminars/Itay%20Goldstein%20-%20Abstract.pdf, accessed October 18, 2019. Search in Google Scholar

11. Jo, Y., J. Kim, and F. Santos. The Impact of Chinese Interbank Liquidity Risk on Global Commodity Markets, 2018, https://www.jiheekim.net/files/commodity.pdf, accessed October 28, 2019 Search in Google Scholar

12. Król, J. Giełdy towarowe – historia, zasady działania i rola we współczesnej gospodarce, Studia i prace wydziału nauk ekonomicznych i zarządzania 37 (1), 2014, p. 11. Search in Google Scholar

13. Orłowska, R., and K. Żołądkiewicz (eds.). Globalizacja i regionalizacja w gospodarce światowej, Warszawa: PWE, 2012. Search in Google Scholar

14. Palley, T. I.. Financialization: What it is, Why it Matters, IMK Working Paper, (4) 2008., Hans-Böckler-Stiftung, Institut für Makroökonomie undKonjunkturforschung (IMK), Düsseldorf. Search in Google Scholar

15. Ratajczak, M. Finansjalizacja gospodarki: Wymiary dyskusji, Bezpieczny bank 3 (68), 2017, pp. 7-22. Search in Google Scholar

16. Russi, L. Hungry Capital – The financialization of food, Washington: Zero books, 2013. Search in Google Scholar

17. Tomaszewski, D. Finansjalizacja a zmiany strukturalne na rynku towarów rolnych w pierwszych latach XXI wieku, Annales, Universitatis Mariae Curie-Skłodowska, Lublin – Polonia XLIX (4), Sectio H, 2015, pp. 601-610. Search in Google Scholar

18. United Nations Conference on Trade and Development, www.unctadstat.unctad.org. Search in Google Scholar

19. Zaremba, A. Makroekonomiczne determinanty stóp zwrotu na rynkach surowców w warunkach finansjalizacji, Finanse 7, 2014, pp. 69-96. Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo