Digest Finance

Modern trends in the evolution of world financial centers: A regional perspective (Evidence from the International Financial Center in Luxembourg)

Vol. 24, Iss. 3, SEPTEMBER 2019

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Received: 12 December 2016

Received in revised form: 26 December 2016

Accepted: 11 January 2017

Available online: 30 September 2019


JEL Classification: E44, F21, G15, G24, K34

Pages: 290–304


Zvonova E.A. Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Subject The article considers formation and evolution of the international financial center in Luxembourg, and possible use of the experience when developing a phased creation of a regional financial center of the Eurasian Economic Union (EAEU) in Astana.
Objectives The purpose of the study is to evaluate factors of formation of the regional financial center and its subsequent evolution into the world financial center.
Methods I employ methods of comparative and statistical analysis to examine various factors of regional financial center formation, and its stage-by-stage evolution from an offshore financial center to an onshore financial hub.
Results I analyzed criteria and indicators of the regional financial center creation, classified indicators of transparency and stability of the financial center, identified major areas in the transition to the offshore financial center model. The paper reviews the stages of Luxembourg international financial center’s transition to an onshore financial hub.
Conclusions and Relevance The main problem in the functioning of regional and world financial centers is the lack of transparency and offshore nature of financial operations. The paper presents a specific road map for transition of a financial center that functions based on offshore principles to financial onshore centers, gives a definition of the onshore financial center. The findings may find practical application in the elaboration of the road map for creation of a regional financial center of EAEU in Astana.

Keywords: regional financial center, world finance center, offshore, onshore, financial hub


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