IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-0-387-98078-2_13.html
   My bibliography  Save this book chapter

Financial Centers Between Centralization and Virtualization

In: The Changing Geography of Banking and Finance

Author

Listed:
  • Michael H. Grote

    (Frankfurt Institute for Private Equity and M&A, Frankfurt School of Finance & Management)

Abstract

The chapter examines the current and future role of European financial centers. The “virtualization” of space leads to the weakening of the benefits from agglomeration through the widespread use of information and communication technology. Virtualization works well, however, only for standardized information, like stock prices, but not for complex information requiring constant interpretation. For the latter, face-to-face contacts cannot be substituted, and thus, financial centers are here to stay. Nevertheless, it is not clear how many financial centers will survive. The chapter finds strong competition between Europe’s first-tier financial center London and second-tier centers, such as Frankfurt and Paris. Due again to the nature of information, national centers will remain serving opaque domestic businesses. Thus, there is little competition between second-tier centers which are caught in between centralization – toward London – and regionalization toward the most opaque businesses within their respective countries.

Suggested Citation

  • Michael H. Grote, 2009. "Financial Centers Between Centralization and Virtualization," Springer Books, in: Alberto Zazzaro & Michele Fratianni & Pietro Alessandrini (ed.), The Changing Geography of Banking and Finance, edition 1, chapter 13, pages 277-294, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-98078-2_13
    DOI: 10.1007/978-0-387-98078-2_13
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Klagge Britta & Zademach Hans-Martin, 2018. "International capital flows, stock markets, and uneven development: the case of Sub-Saharan Africa and the Sustainable Stock Exchanges Initiative (SSEI)," ZFW – Advances in Economic Geography, De Gruyter, vol. 62(2), pages 92-107, May.
    2. Du, Huibin & Xia, Qiongqiong & Ma, Xuan & Chai, Lihe, 2014. "A new statistical dynamic analysis of ecological niches for China’s financial centres," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 395(C), pages 476-486.
    3. Mirela Ujkani Miti & Sotiraq Dhamo, 2018. "The Impact of Accounting Reforms in Financial Reporting- Case of Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 4, ejes_v4_i.
    4. SCHULZ Christian & WALTHER Olivier, 2010. "Adaptation strategies of Luxembourg's financial centre under pressure," LISER Working Paper Series 2010-26, Luxembourg Institute of Socio-Economic Research (LISER).

    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:spr:sprchp:978-0-387-98078-2_13. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.