What Turns Cities into International Financial Centres?

39 Pages Posted: 29 Nov 2015 Last revised: 19 Jul 2016

See all articles by Dariusz Wojcik

Dariusz Wojcik

University of Oxford, St. Peter's College

Eric R. W. Knight

University of Sydney Business School

Vladimir Pazitka

University of Oxford - School of Geography and Environment

Date Written: November 26, 2015

Abstract

Globalisation and technology continue to fuel worldwide competition among cities for the status of an international financial centre. This study introduces novel data on revenues earned from international finance in 2000-14 by city, and investigates their determinants. It shows that IFCs develop in cities that are leading domestic financial centres, with large, deep, flexible and open labour markets and a large and internationalised non-financial sector, in countries with strong rule of law and contract enforcement. Stock market size and prices, corporate and finance-specific taxation, English as the official language, legal family of origin, and the GMT zone do not matter.

JEL Classification: F30, F60, F65, G24, R30

Suggested Citation

Wojcik, Dariusz and Knight, Eric R. W. and Pazitka, Vladimir, What Turns Cities into International Financial Centres? (November 26, 2015). CIFR Paper No. 085/2015. Available at SSRN: https://ssrn.com/abstract=2695934 or http://dx.doi.org/10.2139/ssrn.2695934

Dariusz Wojcik

University of Oxford, St. Peter's College ( email )

New Inn Hall Street
Oxford, OX1 2DL
United Kingdom

Eric R. W. Knight (Contact Author)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

Vladimir Pazitka

University of Oxford - School of Geography and Environment ( email )

Oxford University Centre for the Environment
South Parks Road
Oxford, OX1 3QY
United Kingdom

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