Luxembourg's specialisation as a financial centre within the global value networks of investment funds
Ruptures like the recent global financial crisis are inherent elements of our global ‘securitised’ financial system. Re-regulations and the maturing of the financial industry have led to re-organisation processes within the industry with far-reaching implications on international financial centres (IFCs). Surprisingly, little is known about the IFCs’ localised organisational nature, social, and structural power relations. Despite the controversy about ‘tax heavens’, empirical evidence suggests that IFCs without an economic hinterland have developed strong local competencies and competitive advantages besides regulation aspects. Although dependent on foreign national economies, their specialisation capacitates them to offer finance-related services to a favourable cost-benefit ratio. The IFC Luxembourg seems to exemplify such a case. It has specialised in administrating a particular type of securities: (cross-border) investment funds. The paper does not only employ the GPN approach on finance but also innovatively links it with social network approaches, suggesting a new perspective to analysing locally anchored practices and dynamics in order to better understand ‘the global’ of today’s financial system.
|Date of creation:||Dec 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 00352 / 58 58 55 - 1
Fax: 00352 / 58 58 55 - 700
Web page: http://www.liser.lu
More information through EDIRC
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.:
- Douglass C. North, 2005.
"Introduction to Understanding the Process of Economic Change
[Understanding the Process of Economic Change]," Introductory Chapters, Princeton University Press.
- Clark, Gordon, 2000. "Pension Fund Capitalism," OUP Catalogue, Oxford University Press, number 9780199240487, March.
- Franz Huber, 2009. "Social Capital Of Economic Clusters: Towards A Network-Based Conception Of Social Resources," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 160-170, 04.
- Pagano, Marco & Volpin, Paolo, 2002.
"The Political Economy of Finance,"
CEPR Discussion Papers
3231, C.E.P.R. Discussion Papers.
- Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
- Bathelt, Harald & Gluckler, Johannes, 2011. "The Relational Economy: Geographies of Knowing and Learning," OUP Catalogue, Oxford University Press, number 9780199587391, March.
- John Cantwell & John H Dunning & Sarianna M Lundan, 2010. "An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment," Journal of International Business Studies, Palgrave Macmillan, vol. 41(4), pages 567-586, May.
- Meric Gertler, 2010. "Rules of the Game: The Place of Institutions in Regional Economic Change," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 1-15.
- Susan Christopherson & Jennifer Clark, 2007. "Power in Firm Networks: What it Means for Regional Innovation Systems," Regional Studies, Taylor & Francis Journals, vol. 41(9), pages 1223-1236.
- Ewald Engelen & Michael H. Grote, 2009. "Stock exchange virtualisation and the decline of second-tier financial centres--the cases of Amsterdam and Frankfurt," Journal of Economic Geography, Oxford University Press, vol. 9(5), pages 679-696, September.
- Henry Wai-chung Yeung, 2009. "Regional Development and the Competitive Dynamics of Global Production Networks: An East Asian Perspective," Regional Studies, Taylor & Francis Journals, vol. 43(3), pages 325-351.
- Danny MacKinnon, 2012. "Beyond strategic coupling: reassessing the firm-region nexus in global production networks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 227-245, January.
- Jeffrey S. Boggs & Norma M. Rantisi, 2003. "The 'relational turn' in economic geography," Journal of Economic Geography, Oxford University Press, vol. 3(2), pages 109-116, April.
When requesting a correction, please mention this item's handle: RePEc:irs:cepswp:2012-40. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Library and Documentation)
If references are entirely missing, you can add them using this form.