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International Regional Science Review, Vol. 27, No. 4, 411-430 (2004)
DOI: 10.1177/0160017604267629

Rank Size Distribution of International Financial Centers

Jessie P. H. Poon

Department of Geography, State University of New York at Buffalo, jesspoon{at}acsu.buffalo.edu

Bradly Eldredge

Department of Geography, State University of New York at Buffalo, beldredge{at}state.mt.us

David Yeung

Department of Finance and Decision Sciences, Hong Kong Baptist University, wkyeung{at}hkbu.edu.hk

The observation that global finance is concentrated in only a small number of international centers and cities has raised the question if worldwide financial integration is being achieved at the expense of increased international urban inequality. This article examines the spatial organization of stock markets for some forty-five cities. While New York, London, and Tokyo are undisputed hosts to the largest stock markets in the world, the analysis shows that inequality among international financial centers and cities has diminished between 1980 to 1999 with increased competition from regional financial centers and emerging markets.

Key Words: stock markets • cities • rank size distribution • international financial centers


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