Changing Urban and Regional Relations in a Globalizing World

Changing Urban and Regional Relations in a Globalizing World

Europe as a Global Macro-Region

Edited by Kathy Pain and Gilles Van Hamme

In this important book, Kathy Pain and Gilles Van Hamme bring together a prestigious group of contributors to provide a systematic assessment of the dynamic, multi-scale network restructuring and spaces of flows associated with globalization that have shaped Europe’s contemporary position in the world during the past decade.

Chapter 7: European stock markets in the arena of financial globalization

Violaine Jurie and Maude Sainteville

Subjects: geography, cities, economic geography, human geography, urban and regional studies, cities, regional studies, urban studies


In the context of globalization, massive changes have disrupted the financial industry since the 1980s, leading to global financial integration. Liberal reforms, initiated to a large extent by the United States and the emblematic British 'Big Bang', have had significant consequences which are of geographic significance. The deregulation process has contributed to the 'de-compartmentalization' of financial markets: barriers between markets have diminished and transnational financial flows have intensified, precipitating the so-called financialization of the world economy. Moreover, this revolution in financial rules and the regulatory environment has been facilitated by rapid advances in information technology. Theoretically, it is possible to raise capital as well as list and trade equities on any stock market worldwide. In consequence, the high mobility and ubiquity of capital in the twenty-first century raises new questions about the ongoing relevance of geography, place and distance in financial globalization (O'Brien, 1992; Cairncross, 1997). However, many barriers counterbalance the process of global financial integration and corroborate the ongoing relevance of spaces and places. Lack of compatibility between technology systems, diverse rules and regulatory environments, significantly different local competencies and unequal liquidity and market opportunities, reinforce the pertinence of listing places. Hence, far from constructing a fluid, smooth and uniform world of financial flows, in reality the stock exchange industry creates spatial disparities and creates or revives territorial boundaries whilst simultaneously reinforcing the concentration of financial actors within global cities (Sassen, 1991, 2002b) and macro-regional financial structures in contemporary globalization.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information