The Evolutionary Chain of International Financial Centers

36 Pages Posted: 13 Aug 2007 Last revised: 12 May 2014

See all articles by Michele U. Fratianni

Michele U. Fratianni

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy; Universita' Politecnica delle Marche

Date Written: October 2007

Abstract

Financial products are unstandardized and subject to a great deal of uncertainty. They tend to concentrate geographically because of the reduction in information costs resulting from close contacts. Concentration leads to economies of scale and encourages external economies. Great financial centers enjoy a high degree of persistence but are not immune from decline and eventual demise. Yet, their achievements are passed along in a an evolutionary manner. In revisiting the historical record of seven international financial centers - Florence, Venice, Genoa, Antwerp, Amsterdam, London and New York - the paper finds evidence of a long evolutionary chain of banking and finance. As to the present and the future, the forces of integration are likely to give an additional boost to the persistence of international financial centers.

Keywords: banking, evolution, finance, money, Genoa, Venice, Florence, Antwerp, Amsterdam, London, New York

JEL Classification: G15, G21, H63, N20

Suggested Citation

Fratianni, Michele, The Evolutionary Chain of International Financial Centers (October 2007). Available at SSRN: https://ssrn.com/abstract=1006590 or http://dx.doi.org/10.2139/ssrn.1006590

Michele Fratianni (Contact Author)

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )

Bloomington, IN 47405
United States
812-855-3360 (Phone)
812-855-3354 (Fax)

Universita' Politecnica delle Marche ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
39-071-2207120 (Phone)

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