Adaptation strategies of Luxembourg's financial centre under pressure
AbstractThe financial crisis has highlighted the vulnerability of International Financial Centres (IFCs). However, very little is known about specialised IFCs, in particular about the impact on their niche activities and the strategies they have developed to return to growth. This article addresses these questions by examining the case of Luxembourg. Firstly, the findings suggest that the increasing concentration of financial services companies has over time created agglomeration economies and contributed to making Luxembourg one of the few global specialist financial centres. IFCs such as Luxembourg are part of a new environment in which competitive advantage will increasingly be based less on regulatory issues and more on the diversity and quality of the services offered. Secondly, the evolution of the financial industry in Luxembourg suggests that a strategy of continuous innovation has been adopted to maintain the comparative competitiveness of the financial centre.
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Bibliographic InfoPaper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2010-26.
Length: 36 pages
Date of creation: Sep 2010
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-02 (All new papers)
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.:
- Michael H. Grote, 2008. "Foreign banks' attraction to the financial centre Frankfurt: an inverted 'U'-shaped relationship," Journal of Economic Geography, Oxford University Press, vol. 8(2), pages 239-258, March.
- DAUTEL Vincent & WALTHER Olivier, 2011. "The geography of innovation in the Luxembourg metropolitan region: an intra-regional approach," CEPS/INSTEAD Working Paper Series 2011-38, CEPS/INSTEAD.
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