Economic Geography and European Finance

Abstract

This report summarises the scientific content and results of the European Science Foundation Exploratory Workshop on 'Economic Geography and European Finance' held at Jesus College, Oxford University, 16-19 September 2004. The objective of the workshop was to further our understanding of the links between finance and space in the European context, through a cross-examination of ideas between the growing field of economic geography and the geographical perspectives applied in other social sciences including financial economics, political science, sociology as well as management and business studies. With this objective in mind the workshop was organised as a series of six sessions: European finance between globalisation and localisation, stock markets, corporate governance, venture capital, financial centres and banking. The workshop papers stressed the complementarity between quantitative and qualitative research. Still little is known empirically about the spatial flows of capital and finance in Europe, partly due to the lack of comparative data. On the other hand, while we are witnessing is a rebirth of geography in academic literature on finance, there are definite limits of modelling and quantitative methodology traditionally applied in financial economics. As the workshop has highlighted real-world space escapes any easy quantification, and has to be treated as a multi-dimensional concept incorporating distance, political borders, cultural proximity, as well as inclusion in and exclusion from specific social networks. In addition, the workshop has identified promising areas for future interdisciplinary research on European financial markets and institutions.

Keywords: Economic geography, European integration, financial centres, corporate governance, enlargement

JEL Classification: G1, G2, G3, R1, R2, R3, R5