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Financial Geographies and Emerging Markets in Europe

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  • Karreman, B.

Abstract

This study examines the contemporary financial geographies in Central and Eastern Europe and argues how these may affect the established European finacial centre network in the future. As the development of the financial sector in Europe’s emerging markets is largely dependent on foreign investments, explicit attention is directed to determine which emerging centres exhibit sufficient power to attract multinational financial service firms. In addition, it is empirically assessed form which locations these investments are controlled. The results show a distinct spatial order of financial centres organized around three main city clusters: a ‘south-east’ cluster controlled by Athens, a ‘central-east’ cluster around Vienna and a ‘Baltics’ cluster directed from Copenhagen and Stockholm. Based on the results it is argued that these centres of control, with Vienna in particular, may enhance their competitiveness as a financial centre due to their strategic position in the growing markets of Central and Eastern Europe.

Suggested Citation

  • Karreman, B., 2008. "Financial Geographies and Emerging Markets in Europe," ERIM Report Series Research in Management ERS-2008-054-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    • Handle: RePEc:ems:eureri:13222
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    References listed on IDEAS

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    1. Gordon L. Clark, 2002. "London in the European financial services industry: locational advantage and product complementarities," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 433-453, October.
    2. Berger, Allen N. & Klapper, Leora F. & Udell, Gregory F., 2001. "The ability of banks to lend to informationally opaque small businesses," Journal of Banking & Finance, Elsevier, vol. 25(12), pages 2127-2167, December.
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    4. Michael H. Grote & Vivien Lo & Sofia Harrschar–Ehrnborg, 2002. "A value chain approach to financial centres – The case of Frankfurt," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 93(4), pages 412-423, September.
    5. Peter Taylor & Michael Hoyler, 2000. "The spatial order of European cities under conditions of contemporary globalisation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 91(2), pages 176-189, May.
    6. Ilko Naaborg & Bert Scholtens & Jakob de Haan & Hanneke Bol & Ralph de Haas, 2004. "How Important are Foreign Banks in the Financial Development of European Transition Countries?," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(2), pages 99-123, August.
    7. Leslie Budd, 1995. "Globalisation, Territory and Strategic Alliances in Different Financial Centres," Urban Studies, Urban Studies Journal Limited, vol. 32(2), pages 345-360, March.
    8. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    9. Ewald Engelen, 2007. "‘Amsterdamned’? The Uncertain Future of a Financial Centre," Environment and Planning A, , vol. 39(6), pages 1306-1324, June.
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    Cited by:

    1. Martijn J. Burger & Frank G. Van Oort & Koen Frenken & Bert Van Der Knaap, 2009. "Networks And Economic Agglomerations: Introduction To The Special Issue," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(2), pages 139-144, April.
    2. Teodora Dogaru & Martijn Burger & Bas Karreman & Frank Oort, 2015. "Functional and Sectoral Division of Labour within Central and Eastern European Countries: Evidence from Greenfield FDI," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 106(1), pages 120-129, February.

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    More about this item

    Keywords

    Central and Eastern Europe; city clusters; financial centres; multinational banks; parent-subsidiary links;
    All these keywords.

    JEL classification:

    • M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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