Lillian Cheung (Research Department, Hong Kong Monetary Authority) Vincent Yeung (Research Department, Hong Kong Monetary Authority)
Abstract
Traditional measures of concentration of financial market activities do not adequately reflect an economy¡¦s status as an international financial centre (IFC). In this paper, we construct alternative measures that better capture the ability of an IFC to attract capital flows and international demand for its financial services, as well as its attractiveness as a place for international financial institutions to congregate. We also explore the determinants of the competitiveness of IFCs in an analytical and empirical framework. Our findings suggest that, in addition to the pull factors of the IFC, push or demand factors from the economies importing financial services from the IFC are also important. The rise of Mainland China represents a potentially important push factor for the demand for financial services exports from Hong Kong, and hence its status as an IFC.
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Publisher Info
Paper provided by Hong Kong Monetary Authority in its series Working Papers with number
0714.
Find related papers by JEL classification: F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements G15 - Financial Economics - - General Financial Markets - - - International Financial Markets G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
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