The International Finance Index and its Derivatives

Oxford University Centre for the Environment Working Papers in Employment, Work and Finance, Working Paper No. WPG 07-12

10 Pages Posted: 22 Jul 2007 Last revised: 4 Aug 2008

See all articles by Dariusz Wojcik

Dariusz Wojcik

University of Oxford, St. Peter's College

Date Written: July 2007

Abstract

The paper introduces three measures of the international financial sector and presents the ranking of countries based on these measures. The International Finance Index measures the absolute size, the International Finance Location Quotient measures the level of development, and the International Finance Diversity Index captures the degree of diversity and specialisation of a country's international financial services sector. Empirical analysis is conducted for 41 countries using the data from the BIS, the WFE, the IMF, and stock exchanges on cross-border loans and deposits, international debt securities, cross-listed stocks, as well as foreign exchange and OTC derivatives. The analysis confirms the leading position of the UK in international finance, and a relatively weak position of Japan. The paper also discusses the applicability of the International Finance Index and its derivatives in academic and policy research concerned with international financial development, and competition between financial centres.

Keywords: international finance, financial services, financial development, indices, loans, debt securities, stocks, foreign exchange, derivatives, financial centres

JEL Classification: G15, N20, O16

Suggested Citation

Wojcik, Dariusz, The International Finance Index and its Derivatives (July 2007). Oxford University Centre for the Environment Working Papers in Employment, Work and Finance, Working Paper No. WPG 07-12, Available at SSRN: https://ssrn.com/abstract=1002230 or http://dx.doi.org/10.2139/ssrn.1002230

Dariusz Wojcik (Contact Author)

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

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