CONCLUSION

Olivier Coispeau

Chapter 7 in Finance Masters:A Brief History of International Financial Centers in the Last Millennium, 2016, pp 295-334 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Five thousand years ago, presumably 75% of the world trade was taking place within a radius of 20 km. The development of long haul shipping in the 15th century and trade finance has helped push the limits beyond the horizon of the known world, and a specific dynamic resulted from this curiosity. Surprisingly, it took some time for geography to become a main stream concern within economics. For centuries, seaports bundled with finance centres acted as nodes of economic, political and social change in Europe first — and beyond later. Across oceans, financial hubs saved on transaction and information cost and delivered the knowledge needed for the development of lively markets. This evolution coincided with the free circulation of goods, ideas and talents under the rule of law. As such, it has been essential for the structuring of contemporary economic space. In this context, the concentration of population, plus the centripetal nature of maritime complexes set port zones apart from inland areas, as the seed of international financial hubs. Civilisations who decided to purposefully close their borders could not match the path of such progress, as freedom and competition proved to be necessary ingredients for fostering innovation.

Keywords: International Financial Centers; Geography Economics; History of Finance; History of Economics; Financial History; Economic History; Economic Thought (search for similar items in EconPapers)
Date: 2016
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