What turns cities into international financial centres? Analysis of cross-border investment banking 2000–2014

Dariusz Wójcik, Eric Knight and Vladimír Pažitka

Journal of Economic Geography, 2018, vol. 18, issue 1, 1-33

Abstract: Globalisation, financialisation and technology have fuelled competition among international financial centres (IFCs), with investment banks playing an important part in the process. This study introduces novel data on cross-border investment banking revenues in 2000-2014 by city, and investigates their determinants. It shows that IFCs emerge from cities that are already leading domestic financial centres, with large, deep, flexible and open labour markets, and a large and internationalised non-financial sector, in countries with strong rule of law and contract enforcement. Stock market returns, corporate- and finance-specific taxation, English as the official language, and legal family of origin do not seem to matter.

Keywords: International financial centres; investment banking; labour market; institutions; taxation (search for similar items in EconPapers)
JEL-codes: F30 F60 F65 G24 R30 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (10)

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