Competitiveness of Financial Centers in Light of Financial and Tax Law Equivalence Requirements

R.P. Buckley, E. Avgouleas & D.W. Arner (eds.), Reconceptualising Global Finance and its Regulation, Cambridge University Press (2015, Forthcoming)

IFS–Propter Homines Chair Working Paper 005/2015

32 Pages Posted: 9 Sep 2015

See all articles by Dirk A. Zetzsche

Dirk A. Zetzsche

Universite du Luxembourg - Faculty of Law, Economics and Finance; Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC); European Banking Institute

Date Written: September 2015

Abstract

Financial centers are best explained using D.W. Arner’s "hub and spoke model". This explanation for financial centers essentially relies on scale economies. Given the clients’ needs for a base and specialized financial services, base services are provided locally while specialized services are centered in order to justify the costs for specialization. Centers provide the expertise and infrastructure to offer these specialized services. From the specialization results a service industry which coordinates their interests to further their business. While this model to a certain extent explains why financial centers exist, it does not explain where financial centers are located, and why some financial centers flourish while others fail.

Keywords: financial centers, international financial regulation, tax law, equivalence principle, European banking and financial law

JEL Classification: K20, K22, K34, G10, G20

Suggested Citation

Zetzsche, Dirk Andreas, Competitiveness of Financial Centers in Light of Financial and Tax Law Equivalence Requirements (September 2015). R.P. Buckley, E. Avgouleas & D.W. Arner (eds.), Reconceptualising Global Finance and its Regulation, Cambridge University Press (2015, Forthcoming), IFS–Propter Homines Chair Working Paper 005/2015, Available at SSRN: https://ssrn.com/abstract=2655741

Dirk Andreas Zetzsche (Contact Author)

Universite du Luxembourg - Faculty of Law, Economics and Finance ( email )

Luxembourg, L-1511
Luxembourg

HOME PAGE: http://wwwen.uni.lu/recherche/fdef/research_unit_in_law/equipe/dirk_andreas_zetzsche

Heinrich Heine University Dusseldorf - Center for Business & Corporate Law (CBC) ( email )

Universitaetsstr. 1
D-40225 Düsseldorf
Germany
+49 211 81 15084 (Phone)
+49 211 81 11427 (Fax)

European Banking Institute ( email )

Frankfurt
Germany

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