The Asian International Financial Centres (IFC) are growing in importance within the global economy. Increasingly they are becoming the control centres of financial flows and innovation. In...Show moreThe Asian International Financial Centres (IFC) are growing in importance within the global economy. Increasingly they are becoming the control centres of financial flows and innovation. In particular, the aspiring IFCs of Shanghai and Seoul have remarkably increased in status and competitiveness. This research discusses a possible explanation for their increase in competitiveness. Both cities have large systemic differences from the well-established Western IFCs, as government control and policies have been predominant in the East-Asian region. Nevertheless, they are flourishing in the international financial system based on market mechanism. During the Asian Financial Crisis, Asian centres have undergone many changes and multiple government reform policies have been carried out to enhance the financial sectors. Within this research, the influence of the crisis and changes in the determining factors for competitiveness are scrutinized. The four main determinants constituting an IFC set the parameters for the two case studies of Shanghai and Seoul. The results suggest that the government focus on rapid technological and infrastructural developments have contributed the most to the increase in competitiveness. Moreover, these developments are a part of a shift towards high-end technology industries and services and the overarching government-driven transition towards a knowledge economy.Show less
