What Have We Learned About Political Participation Changing a Financial Centre’s Competitiveness?

Abstract

What role does polyarchy (and thus increased democracy) play in aiding the development of an international financial centre? Little research has addressed to date. In this paper, we look at that literature in preparation for econometric analysis in the future. The evidence, such as it exists, suggests that some jurisdictions use autocracy (less polyarchy) to help grow out their financial centres. These results could impact decisions ranging from Brexit to Hong Kong’s autonomy in its post-2047 period.