The Evolutionary Chain of International Financial Centers

Michele Fratianni

No 2007-14, Working Papers from Indiana University, Kelley School of Business, Department of Business Economics and Public Policy

Abstract: Financial products are unstandardized and subject to a great deal of uncertainty. They tend to concentrate geographically because of the reduction in information costs resulting from close contacts. Concentration leads to economies of scale and encourages external economies. Great financial centers enjoy a high degree of persistence but are not immune from decline and eventual demise. Yet, their achievements are passed along in a an evolutionary manner. In revisiting the historical record of seven international financial centers – Florence, Venice, Genoa, Antwerp, Amsterdam, London and New York — the paper finds evidence of a long evolutionary chain of banking and finance. As to the present and the future, the forces of integration are likely to give an additional boost to the persistence of international financial centers.

Keywords: banking; evolution; finance; money; Genoa; Venice; Florence; Antwerp; Amsterdam; London; New York (search for similar items in EconPapers)
JEL-codes: G15 G21 H63 N20 (search for similar items in EconPapers)
Date: 2007-08
New Economics Papers: this item is included in nep-his and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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http://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2007-14-fratianni.pdf (application/pdf)

Related works:
Chapter: The Evolutionary Chain of International Financial Centers (2009)
Working Paper: The Evolutionary Chain of International Financial Centers (2008)
Working Paper: The Evolutionary Chain of International Financial Centers (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:iuk:wpaper:2007-14

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