Financial crisis , financial center , government policy
Abstract:
This paper analyses fundamental location factors for the financial industry by
investigating the economic significance of market participants’ assessments of location
factors and country-specific characteristics over time. A unique data set allows studying the
locational attractiveness of financial centers before, during, and after the recent financial
crisis. The results reveal that especially dense networks in cluster concentration and
governmental support strongly determine a location’s attractiveness for financial institutions,
whereas a specialized pool of labor alone without concentration and the level of taxation seem
not to be relevant. Financial centers with a strong home market benefit during times of crisis
in contrast to offshore centers and vice versa. Overall, financial centers’ attractiveness varies
over time, while the decisive location factors stay the same. The findings are not hinged by
differences in market participants’ socio-economic backgrounds. Investment fund companies
seem to value the attractiveness of a financial center much more than banks, insurance
companies, and corporates do.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
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