The Virtualisation of an Equity Exchange Explaining the Decline of the Amsterdam Financial Centre

51 Pages Posted: 13 Feb 2008

See all articles by Ewald Engelen

Ewald Engelen

University of Amsterdam - Department of Geography

Michael H. Grote

Frankfurt School of Finance & Management

Date Written: December 2007

Abstract

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

Engelen, Ewald and Grote, Michael H., The Virtualisation of an Equity Exchange Explaining the Decline of the Amsterdam Financial Centre (December 2007). Available at SSRN: https://ssrn.com/abstract=1092785 or http://dx.doi.org/10.2139/ssrn.1092785

Ewald Engelen

University of Amsterdam - Department of Geography ( email )

Planning and International Development Studies
1018 WB Amsterdam
Netherlands

Michael H. Grote (Contact Author)

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

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