IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v51y2019i3p687-704.html
   My bibliography  Save this article

Investment banking centres since the global financial crisis: New typology, ranking and trends

Author

Listed:
  • Dariusz Wójcik
  • Vladimír Pažitka
  • Eric Knight
  • Phillip O’Neill

Abstract

Financial centres are central to contemporary capitalism, but research on their development has been impeded by methodological challenges related to data availability. This paper offers a new typology of financial centre activity. Based on the nationality of parent companies of financial service providers operating in a centre, and the nationalities of their customers, we distinguish between domestic, export, import and platform activities. Second, we compile a unique dataset of investment banking deals worldwide, which allows us to apply the new typology and introduce the first ever ranking of top financial centres based on the actual investment banking activity conducted in these centres. Our findings confirm the dominance of New York and London as global financial centres, with New York focused on domestic activities, and London on export and platform activities. Our data also show that, overall, investment banking activity has fallen dramatically since 2007, with 60% of the decline concentrated in New York, and a further 30% in Zurich, London, Frankfurt, Amsterdam and Edinburgh combined. As a result, the dominance of investment banking by New York and London has diminished, contributing to a trend that predates the crisis, explainable by the increasing shares of Asian centres, with Tokyo and Chinese cities in the lead.

Suggested Citation

  • Dariusz Wójcik & Vladimír Pažitka & Eric Knight & Phillip O’Neill, 2019. "Investment banking centres since the global financial crisis: New typology, ranking and trends," Environment and Planning A, , vol. 51(3), pages 687-704, May.
    • Handle: RePEc:sae:envira:v:51:y:2019:i:3:p:687-704
    DOI: 10.1177/0308518X18797702
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0308518X18797702
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0308518X18797702?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ewald Engelen & Michael H. Grote, 2009. "Stock exchange virtualisation and the decline of second-tier financial centres--the cases of Amsterdam and Frankfurt," Journal of Economic Geography, Oxford University Press, vol. 9(5), pages 679-696, September.
    2. Geisst, Charles R., 2012. "Wall Street: A History, Updated Edition," OUP Catalogue, Oxford University Press, number 9780195396218.
    3. Eric Knight & Dariusz Wójcik, 2017. "Geographical linkages in the financial services industry: a dialogue with organizational studies," Regional Studies, Taylor & Francis Journals, vol. 51(1), pages 116-127, January.
    4. Laure Quennouëlle-Corre, 2018. "Paris :The Possibility of Revival as an International Financial Centre," Post-Print hal-01968944, HAL.
    5. Rodrigo Fernandez & Annelore Hofman & Manuel B Aalbers, 2016. "London and New York as a safe deposit box for the transnational wealth elite," Environment and Planning A, , vol. 48(12), pages 2443-2461, December.
    6. Peter J. Taylor & Ben Derudder & James Faulconbridge & Michael Hoyler & Pengfei Ni, 2014. "Advanced Producer Service Firms as Strategic Networks, Global Cities as Strategic Places," Economic Geography, Clark University, vol. 90(3), pages 267-291, July.
    7. Peter J. Taylor & Ben Derudder & James Faulconbridge & Michael Hoyler & Pengfei Ni, 2014. "Advanced Producer Service Firms as Strategic Networks, Global Cities as Strategic Places," Economic Geography, Taylor & Francis Journals, vol. 90(3), pages 267-291, July.
    8. Jennifer Robinson, 2002. "Global and world cities: a view from off the map," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 26(3), pages 531-554, September.
    9. Joshua K. Leon, 2017. "Global cities at any cost," City, Taylor & Francis Journals, vol. 21(1), pages 6-24, January.
    10. Ihsan Erdem Kayral & Mehmet Baha Karan, 2012. "The research on the distinguishing features of the international financial centers," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(5), pages 1-14.
    11. Fiona F Yang & Anthony G O Yeh, 2013. "Spatial Development of Producer Services in the Chinese Urban System," Environment and Planning A, , vol. 45(1), pages 159-179, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zachary P Neal, 2017. "Well connected compared to what? Rethinking frames of reference in world city network research," Environment and Planning A, , vol. 49(12), pages 2859-2877, December.
    2. Xu Zhang, 2018. "Multiple creators of knowledge-intensive service networks: A case study of the Pearl River Delta city-region," Urban Studies, Urban Studies Journal Limited, vol. 55(9), pages 2000-2019, July.
    3. Xu Zhang & Yajuan Li, 2019. "Serving the culture: Spatial interactions between cultural industries and advanced producer services in mainland China," Environment and Planning A, , vol. 51(2), pages 374-392, March.
    4. Kirsten Martinus & Thomas Sigler & Iacopo Iacopini & Ben Derudder, 2019. "The role of tax havens and offshore financial centers in Asia-Pacific networks: evidence from firm-subsidiary connections," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 389-411, November.
    5. Jana Kleibert, 2017. "On the global city map, but not in command? Probing Manila’s position in the world city network," Environment and Planning A, , vol. 49(12), pages 2897-2915, December.
    6. Jonathan Beaverstock & Adam Leaver & Daniel Tischer, 2023. "How financial products organize spatial networks: Analyzing collateralized debt obligations and collateralized loan obligations as “networked productsâ€," Environment and Planning A, , vol. 55(4), pages 969-996, June.
    7. Marieke Krijnen & David Bassens & Michiel van Meeteren, 2017. "Manning circuits of value: Lebanese professionals and expatriate world-city formation in Beirut," Environment and Planning A, , vol. 49(12), pages 2878-2896, December.
    8. Peng Gao & Dan He & Zhijing Sun & Yuemin Ning, 2020. "Characterizing functionally integrated regions in the Central Yangtze River Megaregion from a city‐network perspective," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1357-1379, September.
    9. Dariusz Wójcik & Eric Knight & Vladimír Pažitka, 2018. "What turns cities into international financial centres? Analysis of cross-border investment banking 2000–2014," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 1-33.
    10. van den Buuse, Daniel & Kolk, Ans, 2019. "An exploration of smart city approaches by international ICT firms," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 220-234.
    11. Kirsten Martinus & Matthew Tonts, 2015. "Powering the world city system: energy industry networks and interurban connectivity," Environment and Planning A, , vol. 47(7), pages 1502-1520, July.
    12. Liena Kano & Eric W. K. Tsang & Henry Wai-chung Yeung, 2020. "Global value chains: A review of the multi-disciplinary literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 577-622, June.
    13. Zhang, Songlin & Miao, Xuaner & Zheng, Haoqing & Chen, Weihong & Wang, Huafeng, 2024. "Spatial functional division in urban agglomerations and carbon emission intensity: New evidence from 19 urban agglomerations in China," Energy, Elsevier, vol. 300(C).
    14. Miaoxi Zhao & Xingjian Liu & Ben Derudder & Ye Zhong & Wei Shen, 2015. "Mapping producer services networks in mainland Chinese cities," Urban Studies, Urban Studies Journal Limited, vol. 52(16), pages 3018-3034, December.
    15. Tianling Zhang & Panda Su & Hongbing Deng, 2021. "Does the Agglomeration of Producer Services and the Market Entry of Enterprises Promote Carbon Reduction? An Empirical Analysis of the Yangtze River Economic Belt," Sustainability, MDPI, vol. 13(24), pages 1-21, December.
    16. Senhua Huang & Wenzhong Ye & Feng Han, 2023. "Does the Digital Economy Promote Industrial Collaboration and Agglomeration? Evidence from 286 Cities in China," Sustainability, MDPI, vol. 15(19), pages 1-24, October.
    17. Wang, Hongzheng & Lu, Xinhai & Feng, Lianyue & Yuan, Zhihang & Tang, Yifeng & Jiang, Xu, 2023. "Dynamic change and evolutionary mechanism of city land leasing network—Taking the Yangtze River Delta region in China as an example," Land Use Policy, Elsevier, vol. 132(C).
    18. Christoph Stich & Emmanouil Tranos & Max Nathan, 2023. "Modeling clusters from the ground up: A web data approach," Environment and Planning B, , vol. 50(1), pages 244-267, January.
    19. Özgür Sayın & Michael Hoyler & John Harrison, 2022. "Doing comparative urbanism differently: Conjunctural cities and the stress-testing of urban theory," Urban Studies, Urban Studies Journal Limited, vol. 59(2), pages 263-280, February.
    20. Tuochen Li & Dongri Han & Shaosong Feng & Lei Liang, 2019. "Can Industrial Co-Agglomeration between Producer Services and Manufacturing Reduce Carbon Intensity in China?," Sustainability, MDPI, vol. 11(15), pages 1-15, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:51:y:2019:i:3:p:687-704. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.