Capital profitability in the center and the periphery of the eurozone. A comparative analysis

Abstract

This research addresses a topic barely studied in the literature of the Eurozone, namely a comparative study of the profitability of capital in a representative sample of the most advanced economies and the periphery. Based on a political economy approach, calculations of the profit rate and the volume of surplus are shown, as well as the (labor) productivity of surplus, employment, and the process of capital accumulation. The study reveals an asymmetry between the center and the periphery in terms of profitability, and a related underlying problem. Moreover, it identifies a profound change since the Great Recession, though so far this does not materialize in any trends towards a productive convergence between core and peripheral economies.