Rank Size Distribution of International Financial Centers

Abstract

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.