Securities markets, international financial centres, and regional resilience. A comparative analysis of Luxembourg and Singapore as strategic nodes in investment funds' global production networks (LuSiFunds)
Financial capital has outweighed the importance of industrial capital, yet, the creation of financial capital follows key organisational patterns of industrial production. In the wake of the global financial crisis, governments and policymakers have been aiming at building stronger regional economies, which also applies to financial centres, the power houses of financial production. This project explored the potential of a more holistic approach that grasp finance as a global production system. The framework of the Global Production Network (GPN) combines financial activities on several spatial scales and offers an analytical instrument to better comprehend the complexities of global finance. Building on the example of the asset management industry, this project defined the causalities of financial flows between IFCs as well as to reflect the impacts of inter-firm and firm-regulatory relationships that influence and direct these flows. As a result, the examples of the two financial hubs Luxembourg and Singapore show how their highly specialized regional assets in finance not only influence financial production in other IFCs but also how their own specialization could potentially further bolster their regional financial economies within a more sustainable understanding.