International financial centers after the 2008–2009 global financial crisis

Abstract

Although the financial crisis of 2008–2009 originated in the USA, its effects reverberated throughout the globe. The crises have also had effects on the balance of power among the competing global financial centers. Although developed nations have been able to maintain their general competitive positions for investors, new financial centers began attracting attention. This chapter the post financial crises competitive positions of international financial centers are evaluated on dimensions of “financial development”, “doing business” and “quality of life and cost of living” through cost-benefit analysis using TOPSIS (Technique for Order Preference by Similarity to an Ideal Solution) method. The findings of the study where financial centers of 15 countries were evaluated show that; (1) in regards to financial development the financial centers of developed nations maintain their importance for investors, (2) in regards to doing business the financial centers of Asian nations appear more advantageous, (3) developing nations can compete with developed nations when it comes to “quality of life and cost of living”, (4) Generally, although the financial centers of developed nations can protect their competitive positions the developing nations of Asia are increasing their competitiveness. Financial centers in Europe seem to have lost some of their competitiveness as a result of the global financial crises.