The Virtualisation of an Equity Exchange Explaining the Decline of the Amsterdam Financial Centre
51 Pages Posted: 13 Feb 2008
Date Written: December 2007
Traditionally, financial centres were held together be the need to be located in the proximity of physical exchanges. However, given the rise of information and communication technologies these "anchors" have increasingly been lifted, with telling consequences for second-tier financial centres like Amsterdam. This paper traces the current decline of the Amsterdam financial centre to the virtualisation of its stock and derivative markets. As such, the empirical aim of the paper is to add a case of IFC decline to the existing collection of IFC case descriptions. The paper ends with an attempt to assess the explanatory powers of two competing theoretical perspectives, i.e. New Economic Geography and Comparative Political Economy, by determining to what extent the two approaches fit the empirical evidence. This is the theoretical aim of the paper.
Keywords: Financial Centers, Amsterdam, New Economic Geography, Comparative Political Economy
JEL Classification: G10, G20, N20, R30
Suggested Citation: Suggested Citation