Stock Exchange Virtualisation and the Decline of Second-Tier Financial Centres-The Cases of Amsterdam and Frankfurt

Posted: 31 Aug 2009

See all articles by Ewald Engelen

Ewald Engelen

University of Amsterdam - Department of Geography

Michael H. Grote

Frankfurt School of Finance & Management

Date Written: September 2009

Abstract

International financial centres used to be stable economic clusters held together by the centripetal forces emanating from physical exchanges. However, given near complete ‘virtualisation’, these ‘anchors’ have gradually disappeared. As this article demonstrates, this has had telling consequences for second-tier financial centres like Amsterdam and Frankfurt. Empirically, the article adds cases of financial centre decline to the existing collection of case descriptions. Theoretically, the article assesses the explanatory capacity of the combination of two complementary theoretical perspectives, New Economic Geography and Comparative Political Economy, by determining to what extent they fit the two case studies.

Keywords: international financial centres, Amsterdam, Frankfurt, virtualisation, New Economic Geography, comparative political economy, theoretical pluralism

JEL Classification: R11, R12, F22

Suggested Citation

Engelen, Ewald and Grote, Michael H., Stock Exchange Virtualisation and the Decline of Second-Tier Financial Centres-The Cases of Amsterdam and Frankfurt (September 2009). Journal of Economic Geography, Vol. 9, Issue 5, pp. 679-696, 2009, Available at SSRN: https://ssrn.com/abstract=1463213 or http://dx.doi.org/lbp027

Ewald Engelen (Contact Author)

University of Amsterdam - Department of Geography ( email )

Planning and International Development Studies
1018 WB Amsterdam
Netherlands

Michael H. Grote

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

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