The Location of Financial Activities: The Impact of New Technologies and the Financial Crisis
AbstractThe location of financial activities is traditionally characterized by a great deal of inertia. However, the boom in new information and communication technologies, the globalization of economies and the 2007-08 financial crisis have considerably modified the geography of finance. Financial globalization has, first of all, had a heavy impact on the level of spatial concentration / dispersion of activities. The dynamics have not acted in a uniform way – schematically speaking three levels can be distinguished. On the urban scale, financial activities have been spread out (suburbanization), while on the regional scale or the national scale, due to financial globalization, financial activities have been more tightly grouped. Lastly, on the international scale, a movement of dispersion has mainly been observed, along with a specialization of financial centers. The 2007-08 financial crisis might well accentuate this last effect and cause an upheaval in world hierarchy. Actually, the financial centers that are most elastic to the economic situation – London, New York and tax havens – are massively losing jobs, while the stock markets in Shanghai, Hong Kong and Bombay are now upstaging them as major players.
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Bibliographic InfoPaper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2009-26.
Length: 20 pages
Date of creation: 2009
Date of revision:
Financial Geography; International Financial Centers; Globalization; Informational Externalities;
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G2 - Financial Economics - - Financial Institutions and Services
- R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-FDG-2009-07-28 (Financial Development & Growth)
- NEP-GEO-2009-07-28 (Economic Geography)
- NEP-MAC-2009-07-28 (Macroeconomics)
- NEP-URE-2009-07-28 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yamina Tadjeddine & Gunther Capelle-Blancard, 2007. "Les places financières : désintégration, suburbanisation et spécialisation," Revue d'Économie Financière, Programme National Persée, vol. 90(4), pages 93-115.
- Callaghan, Helen & Lagneau-Ymonet, Paul, 2010. "The phantom of Palais Brongniart economic patriotism and the Paris stock exchange," MPIfG Discussion Paper 10/14, Max Planck Institute for the Study of Societies.
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