ncial services through lax regulatory activity, low taxation, and lower transactions cost Yeandle, Horne, Danev, and Knapp 40-43).
This study focuses primarily on global financial centers. The Global Financial Center Index (GFCI) provides a ranking of all of the financial centers in all countries and in all classifications. A total of 75 financial centers were included in the 2001 GFCI. The rating scores ranges from 775 (London) to 436 (Reykjavik). Six financial centers received ranking scores above 690. These six financial centers (London, New York, Hong Kong, Singapore, Shanghai, and Tokyo) are the major global financial centers. An additional 24 financial centers received rating scores above 595. These 24 financial centers have the potential to become major global financial centers (Yeandle 4). The top 30 financial centers are identified in Table 1, which may be found on page 4.
Presentation of the Study Findings
The presentation of the findings of this study begin with a brief review of the history of the development of financial centers. This review of the history of financial centers is followed by a more extensive discussion of the present situation of financial centers. Following the discussion of the present situation of financial centers, comparisons among the six major global financial centers are presented. These comparisons are intended to identify both differences and similarities. An analysis of the differences and similarities is intended to provide insights as to how and why these six financial centers evolved as major global financial centers.
With respect to each of the six major global financial centers, an assessment then is presented that focuses on the potential of each of the six major global financial centers to evolve into the most influential of the global financial centers. This assessment is followed by a second assessment that focuses on the potential of the remainder t...