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

Dariusz Wójcik, Eric Knight, Vladimír Pažitka

Research output: Contribution to journalArticle

23 Citations (Scopus)

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.

Original languageEnglish
Article numberlbx008
Pages (from-to)1-33
Number of pages33
JournalJournal of Economic Geography
Volume18
Issue number1
DOIs
Publication statusPublished - 1 Jan 2018
Externally publishedYes

Keywords

  • Institutions
  • International financial centres
  • Investment banking
  • Labour market
  • Taxation

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