Competitiveness Enhancement of International Financial Centres

Irina Solovjova, Ramona Rupeika-Apoga, Inna Romanova
European Research Studies Journal, Volume XXI, Issue 1, 5-17, 2018
DOI: 10.35808/ersj/925

Abstract:

In recent years, international financial centres have become one of the most important elements of the international financial system. Increasing globalization of the world economy raises the role and influence of international financial centres (IFC) due to extending scope of activities of IFC that currently includes financial markets, international financial and lending relations, insurance, etc.Financial centres make a substantial contribution to the overall economic development and growth of the country. The establishment and development of financial centres is a quite complex and complicated process that combines various historical, geographic, social, economic and political factors.The establishment of international financial centres is related to financial liberalization processes as well as globalization of the financial market. According to the history of financial centres, a number of factors contribute to their establishment and development: geographic location, multicultural factors, liberal legislation, stimulating tax and customs policies, immigration legislation, competitive costs of financial services, etc. However, it is not always that financial centres are established in places with favourable economic, political and social factors. It requires both a combination and interaction of different factors, as well as political will and success.The aim of the paper is basing on the examination of the factors influencing establishment of IFC, to analyze the directions of the competitiveness enhancement of Riga International Financial Centre by identifying its potential niche.The following research methods have been used in the paper: generally accepted quantitative and qualitative methods of economic research, including comparative analysis and synthesis, graphic methods, expert methods, SWOT analysis.


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