Location of international financial activities: theoretical finding and recent trends

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Date

2000

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MESR

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Copyright PERSEE 2003-2023. Works reproduced on the PERSEE website are protected by the general rules of the Code of Intellectual Property. For strictly private, scientific or teaching purposes excluding all commercial use, reproduction and communication to the public of this document is permitted on condition that its origin and copyright are clearly mentionned.

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There has been a growing interest in international financial centres (IFCs) in recent years. Nevertheless, discussion usually focuses on the respective costs and advantages of the different centres. This papers offers theoretical insights on the geography of international financial activities and the function of IFCs. We refer to various models of competition between markets and economic geography and compare their results with recent developments in the international financial environment. Two trends are highlighted : first, the weakening of traditional barriers to concentration of capital markets and greater pressures on geographical concentration of financial activities in largest centres ; and second, incentives to separate geographically the production of international financial activities to exploit specific advantages of the various sites. JEL Classification : G10, R12

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