Lessons of the financial crisis for the attractiveness of European financial centers
This paper analyses fundamental location factors for the financial industry by investigating the economic significance of market participants' assessments of location factors and country-specific characteristics over time. A unique data set allows studying the locational attractiveness of financial centers before, during, and after the recent financial crisis. The results reveal that especially dense networks in cluster concentration and governmental support strongly determine a location's attractiveness for financial institutions, whereas a specialized pool of labor alone without concentration and the level of taxation seem not to be relevant. Financial centers with a strong home market benefit during times of crisis in contrast to offshore centers and vice versa. Overall, financial centers' attractiveness varies over time, while the decisive location factors stay the same. The findings are not hinged by differences in market participants' socio-economic backgrounds. Investment fund companies seem to value the attractiveness of a financial center much more than banks, insurance companies, and corporates do.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
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.:
- Marius BRÜLHART & Mario JAMETTI, 2004.
"Vertical Versus Horizontal Tax Externalities: An Empirical Test,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
04.11, Université de Lausanne, Faculté des HEC, DEEP.
- Brulhart, Marius & Jametti, Mario, 2006. "Vertical versus horizontal tax externalities: An empirical test," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 2027-2062, November.
- Marius Brülhart & Mario Jametti, 2004. "Vertical Versus Horizontal Tax Externalities: An Empirical Test," Department of Economics Working Papers 2004-14, McMaster University.
- Brülhart, Marius & Jametti, Mario, 2004. "Vertical versus Horizontal Tax Externalities: An Empirical Test," CEPR Discussion Papers 4593, C.E.P.R. Discussion Papers.
- Raghuram G. Rajan & Luigi Zingales, .
"Financial Dependence and Growth,"
CRSP working papers
344, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
- Johannes Becker & Clemens Fuest, 2005.
"Optimal Tax Policy when Firms are Internationally Mobile,"
CESifo Working Paper Series
1592, CESifo Group Munich.
- Johannes Becker & Clemens Fuest, 2011. "Optimal tax policy when firms are internationally mobile," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 18(5), pages 580-604, October.
- Johannes Becker & Clemens Fuest, 2009. "Optimal tax policy when firms are internationallly mobile," Working Papers 0907, Oxford University Centre for Business Taxation.
- Britta Klagge & Ron Martin, 2005. "Decentralized versus centralized financial systems: is there a case for local capital markets?," Journal of Economic Geography, Oxford University Press, vol. 5(4), pages 387-421, August.
- Venables, Anthony J, 1993.
"Equilibrium Locations of Vertically Linked Industries,"
CEPR Discussion Papers
802, C.E.P.R. Discussion Papers.
- Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-59, May.
- Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers dp0137, Centre for Economic Performance, LSE.
- Sandra Schmidt & Dieter Nautz, 2012.
"Central Bank Communication and the Perception of Monetary Policy by Financial Market Experts,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 44, pages 323-340, 03.
- Schmidt, Sandra & Nautz, Dieter, 2010. "Central bank communication and the perception of monetary policy by financial market experts," Discussion Papers 2010/29, Free University Berlin, School of Business & Economics.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Howitt, Peter & Griffith, Rachel & Aghion, Philippe & Blundell, Richard & Bloom, Nick, 2005.
"Competition and Innovation: An Inverted-U Relationship,"
4481507, Harvard University Department of Economics.
- Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and Innovation: An Inverted U Relationship," NBER Working Papers 9269, National Bureau of Economic Research, Inc.
- Philippe Aghion & Nicholas Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2002. "Competition and innovation: an inverted U relationship," IFS Working Papers W02/04, Institute for Fiscal Studies.
- Ron Martin, 2011. "The local geographies of the financial crisis: from the housing bubble to economic recession and beyond," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 587-618, July.
- Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
- Lang, Gunnar & Köhler, Matthias, 2011. "How does the domiciliation decision affect mutual fund fees?," ZEW Discussion Papers 11-085, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, W.E. Upjohn Institute for Employment Research, vol. 14(1), pages 15-34, February.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:12080. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.