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Assessing the Competitiveness of International Financial Services in Particular Locations: A Survey of Methods and Perspectives

31 Pages Posted: 7 Nov 2007  

George M. von Furstenberg

Indiana University

Date Written: November 7, 2007

Abstract

The International Financial Services (IFS) industry is restructuring internally and by location. This paper outlines the economic forces and analytical methods that may be applied to examine the economic drivers of these processes as ever more cities, particularly in East Asia, are vying to attract IFS providers and their clients. The ICT revolution has made those IFS that can be commoditized footloose in search of cost efficiency. High value-added financial services, however, will continue to be developed and coordinated in a few major IFS centers that have invested in, or capitalized on, regional or global advantages for themselves and their clients. The resulting pattern of functional fragmentation and geographic dispersal may facilitate analyses of the competitiveness of different lines of the financial services business in a particular location by methods such as Data Envelopment and Stochastic Frontier Analysis. These forms of comparative efficiency analysis have recently been questioned and their results reinterpreted.

Keywords: offshore centers, international financial services, Data Envelopment Analysis, Stochastic Frontier Analysis

JEL Classification: E44, F30, G20

Suggested Citation

von Furstenberg, George M., Assessing the Competitiveness of International Financial Services in Particular Locations: A Survey of Methods and Perspectives (November 7, 2007). CAEPR Working Paper No. 2007-024. Available at SSRN: https://ssrn.com/abstract=1028288 or http://dx.doi.org/10.2139/ssrn.1028288

George M. Von Furstenberg (Contact Author)

Indiana University ( email )

Department of Economics
Wylie Hall, Indiana University
Bloomington, IN 47405-6620
United States
812-856-1382 (Phone)
812-855-3736 (Fax)

HOME PAGE: http://mypage.iu.edu/~vonfurst/

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