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International Financial Centers specialisation in investment funds activities

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Author Info
Yao, Jean-Marie

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Abstract

This paper presents a model of activities fragmentation in investment funds industry. We consider two strategies: the national one is similar to protectionism and the other is relative to the international market. The financial center proposes adequate combinations of these two strategies in order to attract the maximum of investment funds firms. The profit of the center is measured by the income drawn from the taxation that increases with the market share and the tax rate of the place. By a static simulation game, this paper describes the partial and the total delocalization of investment funds firm. Firstly, that helps us explain investment funds firms' fragmentation of the activity. Secondly we can show a typology of the financial centers, as size or activity is concerned. ---------------- Cet article présente un modèle de fragmentation de l’activité dans l’industrie des fonds d’investissement. Nous considérons deux stratégies: l'une nationale est assimilable à du protectionnisme et l’autre est tournée vers l’international. Les places financières proposent des combinaisons adéquates de ces deux stratégies en vue d’attirer le maximum de firmes d’investissement. Le profit des places financières est mesuré par le revenu tiré de la fiscalité qui augmente avec la part de marché et le taux d’imposition de la place. Par un jeu de simulation statique, cet article décrit la délocalisation partielle ou totale des firmes de fonds. Cela permet dans un premier temps d’expliquer la fragmentation de l’activité des fonds, puis dans un second temps de cerner la typologie des centres financiers, tant du point de vue de la taille que de l’activité.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4512.

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Date of creation: Jun 2007
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Handle: RePEc:pra:mprapa:4512

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Related research
Keywords: International Financial Centers Investment Funds Localisation Attractiveness competitiveness activities specialization ---- Centres financiers Fonds d’investissement Localisation Attractivité Fragmentation de l’activité.

Find related papers by JEL classification:
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
G2 - Financial Economics - - Financial Institutions and Services

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This page was last updated on 2008-7-25.


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